Question
An economist wants to determine whether average price/earnings (P/E) ratios differ for firms in three industries. Independent samples of five firms in each industry produced
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An economist wants to determine whether average price/earnings (P/E) ratios differ for firms in three industries. Independent samples of five firms in each industry produced the following results after conducting a one-way ANOVA. SSB (sum of squares between groups) = 258.82 and SST (sum of squares total) = 424.04. Based on this information, what statistical decision should be made when testing whether average P/E ratios differ in three industries at the 5% level of significance? Assume that P/E ratios are normally distributed.
a. Reject the alternative hypothesis.
b. Accept the null hypothesis.
c. Do not reject the null hypothesis.
d. Reject the null hypothesis.
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