A stock analysist randomly selected eight stocks in each of three different industries; financial, energy, and...

A stock analysist randomly selected eight stocks in each of three different industries; financial, energy, and utilities. Using the past 8 year’s five-year rates of return a mean was found for each stock.

5-year Rates of Return
Financial	Energy	Utilities
10.76	12.72	11.88
15.05	13.91	5.86
17.01	6.43	13.46
5.07	11.19	9.90
19.50	18.79	3.95
8.16	20.73	3.44
10.38	9.60	7.11
6.75	17.40	15.70
??? = 11.59	??? = 13.85	??? = 8.91

The analyst would like to know whether any of the industries have a different rate of return from the others, at the 0.05 level of significance. Complete all 6 steps in testing the hypothesis, including filling out the ANOVA table in step 5.

ANOVA TABLE: Cumulative GPA
Source of Variation	Sum of Squares	Degrees of Freedom	Mean Square	F
Treatment
Error	493.26
Total	590.85

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Expert Solution

Rahul Sunny answered 1 year ago

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