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.

Since the P-value is ___, there (is, or is not) enough evidence to reject the null hypothesis. Thus, we (cannot or can)conclude that the mean rates of return are different at the =0.05 level of significance.

(Round to three decimal places as needed.)

Financial Energy Utilities 10.73 12.72 11.88 15.12 13.91 5.76 17.21 6.43 13.67 5.03 11.19 9.9 19.59 18.93 3.95 8.16 20.73 3.44 10.38 9.6 7.11 6.75 17.4 15.7

Explanation / Answer

applying one way ANOVA on above:

Since the P-value is 0.154  there   is not enough evidence to reject the null hypothesis. Thus, we cannot conclude that the mean rates of return are different at the =0.05 level of significance.

Groups Count Sum Average Variance Financial 8 92.97 11.62125 26.92361 Energy 8 110.91 13.86375 23.88811 Utilities 8 71.41 8.92625 20.89223 ANOVA Source of Variation SS df MS F P-value Between Groups 97.79 2.00 48.89 2.05 0.1543 Within Groups 501.93 21.00 23.90 Total 599.72 23.00

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