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Rates of Returns of Stocks Stocks may be categorized by sectors. Go to the book’s website to obtain the data file 11_3_17 using the file format of your choice for the version of the text you are using. The data represent the one-year rate of return (in percent) for a sample of consumer cyclical stocks and industrial stocks for the period December, 2013, through November, 2014. Note: Consumer cyclical stocks include names such as Starbucks and Home Depot. Industrial stocks include names such as 3M and FedEx.

(a) Draw side-by-side boxplots of one-year rate of return by sector. Does there appear to be a difference in the one-year rate of return for these two sectors?

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(b) Explain why the methods of this section may be used to test whether the mean rate of return for the two sectors differ.

(c) Test whether the mean one-year rate of return for consumer cyclical stocks is different from that of industrial stocks at the  level of significance.

(d) Construct a 95% confidence interval for the mean difference in rate of return between industrial stocks and consumer cyclical stocks. Interpret the interval.

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