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In: Economics

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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