Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Trigonometry

Authors: David M Kennedy, James Stewart, Lothar Redlin, Saleem Watson

2nd Edition

1285226089, 9781285226088

More Books

Students also viewed these Mathematics questions

Question

=+c) What are the RRRs? Based on the RRRs, what action is best?

Answered: 1 week ago

Question

Personal role: This consists of service to family and friends.

Answered: 1 week ago