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    Null hypothesis - Testing

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    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

    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

    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.

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