using the 0.05 level of significance, is there a difference in the mean rate of
ID: 3355930 • Letter: U
Question
using the 0.05 level of significance, is there a difference in the mean rate of return among the three types of stock? 8–1 the test statistic is BUSINESS STATISTICS er 12 Homework value 10.00 points A slock analyst wants to determine whether there is a difference in the mean rate of return for three types of stock uility, retail, and banking stocks The following output is obtained Analyais of variance Source DF Pactor 286.49 Error Total15129.44 43.25 3.30 13.090.001 42.95 Individual 958 CIs FOr Hean Based on Pooled stDov Level uti1lty17.4001.916 MoanStDOV 1 Banking 15.4002.356 12.0 18-0 Pooled StDev 1.818 15.0 Using the 0 05 level of significance, is there a difference in the mean rate of return among the three types of stock? (o.1) The test statistic is (Round your Round your answer to 2 dlecimal places.) e-2) Decision. Reject Find the 95% confidence interval for the difference between the mean rates of return for the inity and the ratail stocks Round your answirs to 2decirmal places) (b.1) 95% confidence interval is (b. 2) We can conciude that the the mean rates of return for the utility and the retail stocks are O the same Reterences Book & Resources Check.myExplanation / Answer
Solution:-
State the hypotheses. The first step is to state the null hypothesis and an alternative hypothesis.
Null hypothesis: 1 = 2 = 3
Alternative hypothesis: At-least one of the is not equal.
Formulate an analysis plan. For this analysis, the significance level is 0.05.
Analyze sample data.
F statistics is given by:-
a-1) F = 13.09
The P-value = 0.001
Interpret results. Since the P-value (0.001) is less than the significance level (0.05), we have to reject the null hypothesis.
Conclusion:-
a-2) Reject H0, There is sufficient evidence for significant differences between the three types of stocks.
b-1) 95% confidecne interval is 6 + 4.
b-2) We can conclude that the mean rates of return for the utility and the retail stocks are different. because confidence interval does not contain 0.
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