Discuss the below:
Q1. 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 1E5 15.5
18.1 12.0 12.7
17.8 11.1 18.'2
17,3 11.9 14.7
19.5 11.6 18.1
112
a. Using the 0.05 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.
Q2. A study regarding the relationship between age and the amount of pressure sales personnel feel in relation to their jobs revealed the following sample information. At the 0.01 significance level, is there a relationship between job pressure and age?
Degree of Job Pressure
Age (years) Low Medium High
Less than 25 20 13 22
25 up to 1M 50 46 44
40 up to 60 58 63 59
60 and oltfer 34 43 43