A stock analyst wondered whether the mean rate of return of

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 through below. State the null and alternative hypotheses. Choose the correct answer below. Normal probability plots indicate that the sample data come from normal populations. Are the requirements to use the one-way ANOVA procedure satisfied? Are the mean rates of return different at the a = 005 level of significance?

Solution

The null hypothesis would be

Ho : All the means are same

Ha : At least one of the means is different

Option A is correct.

also, for part (b) Option A is correct if the samples chosen are both independent and normally distributed.

F-critical value = 3.4668

F-statistics can be obatined when the data is given. Here, the actual table of data points is not available with the question, and hence this question can\'t be answered.

If,

p -value < 0.05, we reject the null hypothesis or conclude that the means are statistically different. Else, we accept the null hypothesis stating that all the above means are same.

Hope this helps.

Refer this link to understand how to solve the question if the data is given;

https://web.mst.edu/~psyworld/anovaexample.htm#1