Explore BrainMass
Share

Null hypothesis - Testing

This content was STOLEN from BrainMass.com - View the original, and get the solution, here!

A stock analyst wants to determine whether there is a difference in the mean rate of return for
three types of stock: utility, retail, and banking stocks. The following sample information is
collected.

Rates of Return
Utility Retail Banking
14.3 11.5 15.5
18.1 12 12.7
17.8 11.1 18.2
17.3 11.9 14.7
19.5 11.6 18.1
13.2

a. Using the .05 level of significance, is there a difference in the mean rate of return among the
three types of stock?

b. Suppose the null hypothesis is rejected. Can the analyst conclude there is a difference
between the mean rates of return for the utility and the retail stocks? Explain.

© BrainMass Inc. brainmass.com September 19, 2018, 7:15 am ad1c9bdddf - https://brainmass.com/statistics/hypothesis-testing/null-hypothesis-testing-47586

Attachments

Solution Summary

The solution contains a detailed analysis of null hypothesis testing. The solution is attached in a zip format.

$2.19