A stock analyst wondered whether the mean rate of return of financial, energy, a

Question

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 accompanying table (in percent). Complete parts (a) through (d) below Click the icon to view the data table y B. Ho-Hnnancial-energy sputities and H: at least one of the means is different D. Ho: at least one of the means is different and H1· inancial-energy-Putiles (b) Normal probability plots indicate that the sample data come from normal populations. Are the requirements to use the one-way ANOVA procedure satisfied? 0 A. No, because there are k= 3 simple random samples, one from each of k populations, the k samples are independent of each other and the populations are normally distributed and have the same variance OB. No, because the largest sample standard deviation is more than twice the smallest sample standard deviation. C. Yes, because there are k 3 simple random samples, one from each of k populations, the k samples are independent of each other, and the populations are normally distributed and have the same variance 0 D. Yes, because there are k = 3 simple random samples one from each of k populations, te k samples are independent of each other, and the populations are normally distributed and have different variances (c) Are the mean rates of return different at the = 0.05 level of significance? Use technology to find the F-test statistic for this data set. Fo =L(Round to two decimal places as needed.) Fo (Round to two decimal places as needed)

Explanation / Answer

The statistical software output for this problem is:

Analysis of Variance results:
Data stored in separate columns.

Column statistics

ANOVA table

Hence,

F0 = 2.05

Column n Mean Std. Dev. Std. Error Financial 8 11.60125 5.2033463 1.8396607 Energy 8 13.86375 4.8875467 1.7280087 Utilities 8 8.925 4.5398993 1.6050968

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