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