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

Question

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

Quizplus · Accepted Answer

The 95% confidence interval for the difference in mean annual dividend rates between companies in utilities and banking does not include 0, and only includes positive values (1.28 to 6.28). This means that we can be 95% confident that the mean annual dividend rate in the banking industry is significantly higher than the mean annual dividend rate in the utilities industry.

The Annual Dividend Rates for a Random Sample of 16