Question

Do various financial indicators differ significantly according to type of company? Using the “Excel Databases.xls” file on Blackboard, locate the tab for the Financial Database. Let Type of Company be the independent variable with seven levels (Apparel, Chemical, Electric Power, Grocery, Healthcare Products, Insurance, and Petroleum for Types 1 – 7, respectively. Perform a one-way ANOVA using Excel with Earnings Per Share as the dependent variable to test if there is a significant difference in earnings per share between the 7 types of companies. (hint: you will have to organize the data appropriately to perform the one-way ANOVA in Excel). Assume a 5% level of significance. Choose the correct ANOVA output from Excel.

2.08

2.08

3.56

0.08

2.19

1.01

2.76

1.14

3.8

5.41

0.89

1.06

3.14

1.18

0.16

4.95

4.88

1.59

1.7

2.31

2.15

7.7

1.2

2.08

3.63

1.73

0.33

1.03

2.86

0.71

3.37

3.57

1.3

2.39

1.18

1.66

1.19

1.57

1.4

3.18

1.66

3.47

2.41

3.34

0.79

0.21

2.66

3.58

2.47

3.11

1.59

3.53

3.74

2.47

4.01

0.48

1.48

2.94

0.82

2.1

1.65

1.53

3

4.15

0.6

0.68

2.1

3.76

1.7

0.61

3.61

1.48

3.94

1.8

5.31

2.13

1.02

1.95

2.99

1.28

2.7

1.8

4.87

1.75

2.39

1.37

2.54

1.94

4.53

1.21

2.65

2.59

1.58

2.03

1.04

1.87

0.97

1.36

1.55

1.57

Answer 1

Data for the per share

Type 1	Type 2	Type 3	Type 4	Type 5	Type 6	Type 7
1.18	1.14	0.16	2.08	0.89	2.08	0.08
1.7	7.7	1.59	1.01	1.06	3.56	2.76
2.31	2.08	2.15	1.18	3.14	2.19	3.8
1.3	3.63	1.2	1.66	2.41	4.88	5.41
0.79	0.33	1.73	1.4	2.47	2.86	4.95
3.11	2.39	1.03	1.02	1.59	3.47	0.71
3.53	1.19	3.57	1.87	3.74	3.34	3.37
2.1	3.18	1.57	1.36	0.82	0.21	3.58
2.99	2.66	1.66		0.6	4.15	4.01
1.75	2.47	1.65		1.7	1.48	2.94
	0.48	1.53		0.61	5.31	3.76
	1.48	0.68		1.95	1.8	3.61
	2.1	1.8		1.28	2.39	2.7
	3			1.21	2.54	4.87
	3.94			1.04	2.59	1.37
	2.13				1.57	1.94
	4.53					2.65
	0.97					1.58
	1.55					2.03

ANOVA results in excel as

ANOVA
Source of Variation	SS	df	MS	F	P-value	F crit
Between Groups	32.04742	6	5.341237	3.456346	0.003976	2.197679
Within Groups	143.7168	93	1.545342
Total	175.7642	99