The annual dividend rates for a random sample of 16 companie

The annual dividend rates for a random sample of 16 companies in three different industries, utilities, banking, and insurance were recorded. The ANOVA comparing the mean annual dividend rate among three industries rejected the null hypothesis that the dividend rates were equal. The mean square error (MSE) was 3.36. The following table summarized the results: Picture Based on the comparison between the mean annual dividend rate for companies in the utilities and insurance industries, _______________________.

Solution

MSE=3.36 and

if F cal > Fcritical value we reject the null hypothesis.

I f F cal< F critical we accept the null hypothesis.