Question

QUESTION 19 A financial analyst studied the annual returns of three different categories of unit trust, she wanted to know whether the average annual returns per category varied across unit category. A random sample of unit trust from each of three categories (A, B and C returns were recorded. were selected and their annual Unit Trust A B C 11 7 14 9 10 15 12 | 13 | 16 14 10 Can the financial analyst conclude that the average annual returns from the three categories of unit trusts are the same? The hypothesis test at the 5% significance level.

Answer 1

19)

H₀: µ_A= µ_B= µ_C

H1: Not all the means are equal

ANOVA

Annual returns
	Sum of Squares	df	Mean Square	F	Sig.
Between Groups	34.433	2	17.217	2.422	.131
Within Groups	85.300	12	7.108
Total	119.733	14

Conclusion:

The p-value of one way analysis is 0.131. This is greater than 0.05. Thus we accept H₀ at 5% level of significance and conclude that the average annual returns from the three categories of unit trust are the same.

Statement-1: Incorrect

Answer: The SSE=85.300

Statement-2: Incorrect

Answer: MST= 17.217

Statement-3: Incorrect

Answer: MSE= 7.108

Statement-4: Incorrect

Answer: F=2.422

Statement-5: Incorrect

Answer: The null hypothesis is probably true.