Question
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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