Anita Cruz recently assumed responsibility for a large investment portfolio. She
ID: 3340272 • Letter: A
Question
Anita Cruz recently assumed responsibility for a large investment portfolio. She wonders whether industry sector influences investment objective. Her staff prepared the following contingency table from a random sample of 200 common stocks.
Investment
Industry Sector
Objective
Electronics
Airlines
Healthcare
Growth
100
10
40
Income
20
20
10
Anita's null hypothesis is ______________.
"investment objective" is related to "industry sector"
"investment objective" influences "industry sector"
"investment objective" is not independent of "industry sector"
"investment objective" is independent of "industry sector"
“growth” and “income” are independent
Investment
Industry Sector
Objective
Electronics
Airlines
Healthcare
Growth
100
10
40
Income
20
20
10
Explanation / Answer
Since she wonders whether industry sector influences investment objective. The null hypothesis is a neutral assumption thus, D) "investment objective" is independent of "industry sector" is the right answer