Fundamentals of Statistics (5th Edition)
5th Edition
ISBN: 9780134508306
Author: Michael Sullivan III
Publisher: PEARSON
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Chapter B.6, Problem 17AYU
Rates of Return A stock analyst wondered whether the mean rate of return of financial, energy, and utility stocks differed over the past five years. He obtained a simple random sample of eight companies from each of the three sectors and obtained the five-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 | 9.90 |
| 19.50 | 18.79 | 3.95 |
| 8.16 | 20.73 | 3.44 |
| 10.38 | 9.60 | 7.11 |
| 6.75 | 17.40 | 15.70 |
Source: Morningstar.com
- (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 α = 0.05 level of significance?
- (d) Draw boxplots of the three sectors to support the results obtained in part (c).
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Chapter B.6 Solutions
Fundamentals of Statistics (5th Edition)
Ch. B.6 - The acronym ANOVA stands for __________ __...Ch. B.6 - True or False: To perform a one-way ANOVA, the...Ch. B.6 - True or False: To perform a one-way ANOVA, the...Ch. B.6 - The variability among the sample means is called...Ch. B.6 - The variability within each treatment group, which...Ch. B.6 - True or False: The F-test statistic is F0=MSTMSE.Ch. B.6 - In Problems 7 and 8, fill in the ANOVA table. 7.Ch. B.6 - In Problems 7 and 8, fill in the ANOVA table. 8.Ch. B.6 - In Problems 9 and 10, determine the F-test...Ch. B.6 - In Problems 9 and 10, determine the F-test...
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