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?
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?
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