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):FinancialEnergyUtilities10.7612.7211.8815.0513.915.8617.016.4313.465.0711.199.919.5018.793.958.1620.733.4410.389.607.116.7517.4015.70 (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?

a) Consider that, µ1, µ2, and µ3 define the mean rate of returns of financial, energy, and utility…

Answered: A stock analyst wondered whether the…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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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.

Definition Definition Measure of central tendency that is the average of a given data set. The mean value is evaluated as the quotient of the sum of all observations by the sample size. The mean, in contrast to a median, is affected by extreme values. Very large or very small values can distract the mean from the center of the data. Arithmetic mean: The most common type of mean is the arithmetic mean. It is evaluated using the formula: μ = 1 N ∑ i = 1 N x i Other types of means are the geometric mean, logarithmic mean, and harmonic mean. Geometric mean: The nth root of the product of n observations from a data set is defined as the geometric mean of the set: G = x 1 x 2 ... x n n Logarithmic mean: The difference of the natural logarithms of the two numbers, divided by the difference between the numbers is the logarithmic mean of the two numbers. The logarithmic mean is used particularly in heat transfer and mass transfer. ln x 2 − ln x 1 x 2 − x 1 Harmonic mean: The inverse of the arithmetic mean of the inverses of all the numbers in a data set is the harmonic mean of the data. 1 1 x 1 + 1 x 2 + ...

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