(a) An indicator of the value of a stock relative to its earnings is its price-carnings ratio. The following table provides the summary statistics of the price-earnings ratios for a random sample of 24 stocks, 8 cach from the healthcare, financials and real estate sectors. Sector Sample mean Sample variance Sample size Healthcare 32.65 4.23 8 Financials 30.01 3.64 8 Real estate 29.24 4.27 You are also given that: 3 8 ΣΣ = 22,657.84. j=1 i=1 Test at the 5% significance level whether the true mean price-carnings ratios for the three market sectors are the same. Use the ANOVA table format to summarise your calculations. You may exclude the p-value. ∞ 24

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(a) An indicator of the value of a stock relative to its earnings is its price-carnings
ratio. The following table provides the summary statistics of the price-earnings
ratios for a random sample of 24 stocks, 8 cach from the healthcare, financials
and real estate sectors.
Sector
Sample mean Sample variance Sample size
Healthcare
32.65
4.23
8
Financials
30.01
3.64
8
Real estate
8
29.24
4.27
You are also given that:
3
ΣΣ m = 22,657.84.
j=1 i=1
Test at the 5% significance level whether the true mean price-carnings ratios
for the three market sectors are the same. Use the ANOVA table format to
summarise your calculations. You may exclude the p-value.
Transcribed Image Text:(a) An indicator of the value of a stock relative to its earnings is its price-carnings ratio. The following table provides the summary statistics of the price-earnings ratios for a random sample of 24 stocks, 8 cach from the healthcare, financials and real estate sectors. Sector Sample mean Sample variance Sample size Healthcare 32.65 4.23 8 Financials 30.01 3.64 8 Real estate 8 29.24 4.27 You are also given that: 3 ΣΣ m = 22,657.84. j=1 i=1 Test at the 5% significance level whether the true mean price-carnings ratios for the three market sectors are the same. Use the ANOVA table format to summarise your calculations. You may exclude the p-value.
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