A random sample of 16 companies was selected and asked for their annual dividend rate in three different industries: utilities, banking, and insurance. The ANOVA comparing the mean annual dividend rate among three industries rejected the null hypothesis. 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 the 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 banking industry.
D) The annual dividend rate in banking industry is significantly less than the annual dividend rate in utilities industry.

Question

A random sample of 16 companies was selected and asked for their annual dividend rate in three different industries: utilities, banking, and insurance. The ANOVA comparing the mean annual dividend rate among three industries rejected the null hypothesis. 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 the 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 banking industry. 
D) The annual dividend rate in banking industry is significantly less than the annual dividend rate in utilities industry.

Quizplus · Accepted Answer

As the confidence interval does not include 0, it means that the difference between the mean annual dividend rate for companies in the utilities and banking is significant at the 95% confidence level. And since the interval is entirely below 0, it concludes that the annual dividend rate in the utilities industry is significantly less than the annual dividend rate in the banking industry.

A Random Sample of 16 Companies Was Selected and Asked