Question 12.140

stockindustry

24. A financial consultant is interested in differences in stock prices between industries and stock exchanges. She has collected a random sample of the stock prices of companies trading on the New York Stock Exchange and on NASDAQ, in the defense industry, the apparel industry, and the chemicals industry. Use level of significance to do the following:

  1. Test for interaction.
  2. If appropriate, test for difference in mean stock price among the industries.
  3. If appropriate, test for difference in mean stock price between the exchanges.
  4. For the results in (b) and (c), would anything change if we used level of significance instead?
Company Industry Exchange Stock
price
Lockheed Martin Defense NYSE 75.35
General Dynamics Defense NYSE 68.17
Guess, Inc. Apparel NYSE 42.30
Van Heusen Apparel NYSE 40.68
Monsanto Chemicals NYSE 81.75
3M Company Chemicals NYSE 82.67
Argon ST Defense NASDAQ 21.71
Elbit Systems Defense NASDAQ 65.05
Iconix Group Apparel NASDAQ 12.67
Perry Ellis Apparel NASDAQ 15.06
Gulf Resources Chemicals NASDAQ 11.66
Hawkins, Inc. Chemicals NASDAQ 21.83
Table 12.55: Source: Federal Trade Commission, November 17, 2009.