A random sample of 16 companies was selected and asked for their annual dividend

Question

A random sample of 16 companies was selected and asked for their annual dividend rate in three different industries: utilities, banking, and insurnace. The ANOVA comparing the mean annual dividend rate among the three industries rejected the null hypothesis. The Mean Square Error (MSE) was 3.36. The following table summarized the results:

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                                               Utilities           Banking             Insurance

Number sampled                         5                    5                        6

Mean annual divident rate           11.62            15.4                   17.4

Based on the comparison of the mean annual dividend between banking and insurance industries,

A.) A 95% confidence interval shows that the mean annual dividend rates are significantly different.

B.) A 90% confidence interval shows that the mean annual dividend rates are significantly different.

C.) A 99% confidence interval shows that the mean annual dividend rates are significantly different.

D.) A 98% confidence interval shows that the mean annual dividend rates are significantly different.

E.) The mean annual dividend rates are NOT significantly different in any of the confidence interval above.

Explanation / Answer

Number sampled                         5                    5                        6

Mean annual divident rate           11.62            15.4                   17.4

option A is answer .) A 95% confidence interval shows that the mean annual dividend rates are significantly different.

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