Rates of Return A stock analyst wondered whether the mean rate of return of financial

Chapter 13, Problem 17

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Rates of Return 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 following table (in percent): 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 Source: Morningstar.com (a) State the null and alternative hypotheses. (b) Verify that the requirements to use the one-way ANOVA procedure are satisfied. Normal probability plots indicate that the sample data come from normal populations. (c) Are the mean rates of return different at the a = 0.05 level of significance? (d) Draw boxplots of the three sectors to support the resultsobtained in part (c).