A pharmaceutical company is testing the effectiveness of a new drug for lowering cholesterol.
A financial advisor wondered whether the mean rate of return of healthcare, consumer goods, and technology stocks differed over the past five years. She obtained a simple random sample of 14 companies from each of the three sectors and obtained five-year rates of return. The means and standard deviations of the rates of return are given below.
|
Mean Rate of Return |
Standard Deviation |
Group |
|
11.601 |
3.656 |
Health Care |
|
8.504 |
3.217 |
Consumer Goods |
|
15.082 |
5.798 |
Technology |
An ANOVA F test was run on the data. Below is a portion of the results:
|
Source |
df |
Sums of squares |
Mean square |
F-ratio |
|
Group |
|
303.2 |
|
|
|
Error |
|
|
19.1 |
|
|
Total |
|
|
|
|