The Annual Dividend Rates for a Random Sample of 16

question 66

Multiple Choice

The annual dividend rates for a random sample of 16 companies in three different industries, utilities, banking, and insurance were recorded. The ANOVA comparing the mean annual dividend rate among three industries rejected the null hypothesis that the dividend rates were equal. The mean square error (MSE) was 3.36. The following table summarized the results: Based on the comparison between the mean annual dividend rate for companies in utilities and banking, the 95% confidence interval shows an interval of 1.28 to 6.28 for the difference. This result indicates that _____________________.

• A) there is no significant difference between the two rates
• B) the interval contains a difference of 5.00
• C) the annual dividend rate in the utilities industry is significantly less than the annual dividend rate in the banking industry
• D) the annual dividend rate in the banking industry is significantly less than the annual dividend rate in the utilities industry

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Definitions:

Rate Of Return

The upward or downward movement in the worth of an investment for a predefined interval, calculated as a percentage of the investment's inaugural cost.

Discount Rate

The Discount Rate is the interest rate used to determine the present value of future cash flows in discounted cash flow analysis.

Predicting Variables

Variables in statistical models that are used to predict outcomes or responses of interest.

Regression Analysis

A statistical method used to model the relationship between a dependent variable and one or more independent variables.