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. EEB Click the icon to view the data table. (a) State the null and alternative hypotheses. Choose the correct answer below. O A. Ho: Pinancial Penergy and H the means are different O B. Ho-Prnancial-Henergy-Hytilities and Hi-Prnancial < μenergy <putilities c. Ho phinancial μenergy-Putilities and H1' at least one of the means is different O D. Ho: at least one of the means is different and Hi: Hinancial-Henergy utilities (b) Normal probability plots indicate that the sample data come from normal populations. Are the requirements to use the one-way ANOVA procedure satisfied? O A No, because there are k = 3 simple random samples, one from each of k populations, the k samples are independent o each other and the populations are normally distributed and have the same variance B Yes, because there are k = 3 simple random samples, one rom each o k populations he k samples are independent of each other and he plalons are ° C. No, because the largest sample standard deviation is more than twice the smallest sample standard deviation. O 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 (c) Are the mean rates of return different at the α-0.05 level of significance? Use technology to find the F-test statistic for this data set. Fo (Round to two decimal places as needed) normally distributed and have different variances normally distributed and have the same variance. natarmino tha D-valso and ctato the annronriate conclucinn halo

Answer 1

a.)

Correct Option is C

Alternate Hypotheses is "At least one of the means are different"

b.)

Option D is correct

c.)

Treatment 1 -> Finance

Treatment 2 -> Energy

Treatment 3 -> Utilities

Treatment 1 10.73 15.05 17.21 5.07 19.59 8.16 10.38 Treatment 2 12.89 13.96 6.33 11.19 18.93 20.73 Treatment 3 11.88 5.86 13.67 9.82 3.95 3.44

Summary of Data Treatments 4 Total 21 86.19 55.73 93.63 235.55 7.9614 Mean 12.3129 13.3757 11.217 1221.6225 1406.5565 536.7635 3164.9425 Std.Dev 5.0693 5.113 5.1701 3.9386 Result Details Source df MS Between 115.2179 F- 2.54382 57.6089 treatments Within- 407.6388 22.6466 treatments Total 522.8567 20 The fratio value is 2.54382. The p-value is.106423. The result is not significant at p<.05

So, Fo = 2.54

d.)

Box Plot Utilities Energy Finance 4 6 10 12 14 16 18 Activate Windo Go to Settings to activ 20 Values

Option A looks correct ( Its little difficult to identify since scale for X-axis is different)