Annuity
a Large Annuity Company Holds Many Industry Group Stocks

question 72

Short Answer

Annuity
A large annuity company holds many industry group stocks.Among the industries are banks,business services and construction.Seven companies from each industry group are randomly sampled to test the hypothesis that the mean price per share is the same among industries.The data are: $$\begin{array} { | l | l | l | } \hline { \text { Banks } } & { \text { Business Services } } & { \text { Construction } } \\\hline n _ { 1 } = 7 & n _ { 2 } = 7 & n _ { 3 } = 7 \\\bar { x } _ { 1 } = 41 & \bar { x } _ { 2 } = 30 & \bar { x } _ { 3 } = 24 \\\sum _ { i = 1 } ^ { n _ { 1 } } \left( x _ { 1 } - \bar { x } _ { 1 } \right) ^ { 2 } = 882 & \sum _ { i = 1 } ^ { n _ { 2 } } \left( x _ { i 2 } - \bar { x } _ { 2 } \right) ^ { 2 } = 1266 & \sum _ { i = 1 } ^ { n _ { 1 } } \left( x _ { i 3 } - \bar { x } _ { 3 } \right) ^ { 2 } = 582 \\\hline\end{array}$$
-Compute the test statistic.
Test statistic = ____________________ = ____________________

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Definitions:

Prompt Payment Discount

A discount offered by sellers to buyers for paying their bills promptly, usually defined as within a specified number of days.

Borrowing Rate

The interest rate or cost that a borrower pays to a lender to borrow money.

Long-Term Projects

Ventures or initiatives with a timeline extending over several years, typically requiring substantial capital investment and planning.

Short-Term Financing

Borrowing options intended for a short period, typically less than a year, to cover immediate needs.