State the null and alternative hypothesis

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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 percents):

Financial 10.76 15.05 17.01 5.07 19.5 8.16 10.38 6.75

Energy 12.72 13.91 6.43 11.19 18.79 20.73 9.60 17.4

Utilities 11.88 5.86 13.46 9.90 3.95 3.44 7.11 15.7

Source: Morningstar.com

Required:

(a) State the null and alternative hypothesis.

(b) Are the mean rates of return different at the alpha = 0.05 level of significance? Please explain your answer, citing numeric and other evidence in support of your response.

Reference no: EM132518502

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