Mutual funds are classified as large-cap funds, medium cap funds, or small-cap funds, depending ont eh capitalizaiton of the companies in the fund. Hawaii Pacific University Researchers S. Shi and M. Seiler investigated whether the averge performance of a mutual fund is related to capitalizaiton size. (American Business Review , Jan. 2002). Independent random samples of 30 mutual funds were selected from each of the three fund groups, and the 90-day rate of return was determined for each fund. The data for the 90 funds were subjected to an analyziz of variance, with the results shown in the ANOVA table below:
SOURCE df SS MS F p-value
Fund group 2 409.566 204.783 6.965 .002
Error 87 2,557.860 29.401 6.965
Total: 89 2,967.426
a) State the null and alternative hypothesis for the ANOVA.
b) Give the rejection region for the test using ? = .01.
c) Make the appropriate conclusion using either the test statistic or the p-value.
This solution gives the step by step method for ANOVA.