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Please answer the following: A stock analyst wondered whether the mean rate of return of financial, energy, and utility stocks differed over the past 5

Please answer the following:

A stock analyst wondered whether the mean rate of return of financial, energy, and utility stocks differed over the past 5 years. He obtained a simple random sample of eight companies from each of the three sectors and obtained the 5-year rates of return shown in the following table (in percent):

Financial

Energy

Utilities

10.76

12.72

11.88

15.05

13.91

5.86

17.01

6.43

13.46

5.07

11.19

9.9

19.50

18.79

3.95

8.16

20.73

3.44

10.38

9.60

7.11

6.75

17.40

15.70

(a) State the null and alternative hypotheses.

(b) Verify that the requirements to use the one-way ANOVA procedure are satisfied. Normal probability plots indicate that the sample data come from normal populations.

(c) Are the mean rates of return different at the a=0.05 level of significance?

(From Statistics: Informed Decisions Using Data, by Sullivan)

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