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. (b) Normal probability plots indicate that the sample data come from normal populations. Are the requirements to use the one-way ANOVA procedure satisfied? 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 B. 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 D. 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 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 2.05 Round to two decimal places as needed.) Determine the P-value and state the appropriate conclusion below. Since the value is there enough evidence to reject the null hypothes . Thus, we conclude that the mean rates of return are different at the : 0.05 level of significance Round to three decimal places as needed.) Enter your answer in the answer box and then click Check Answe

Explanation / Answer

The statistical software output for this problem is:

Analysis of Variance results:
Data stored in separate columns.

Column statistics

ANOVA table

Hence,

Since the P - value is 0.154, There is not enough evidence to reject the null hypothesis. Thus, we can't conclude that the mean rates of return are different.

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

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