The Wall Street Journal’s Shareholder Scoreboard tracks the performance of 1000 major U.S. companies. The performance...

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The Wall Street Journal’s Shareholder Scoreboard tracks theperformance of 1000 major U.S. companies. The performance of eachcompany is rated based on the annual total return, including stockprice changes and the reinvestment of dividends. Ratings areassigned by dividing all 1000 companies into five groups from a(top 20%), b (next 20%), to e (bottom 20%). Shown here are theone-year ratings for a sample of 60 of the largest companies.

A

B

C

D

E

5

8

15

20

12

A) The study wants to test whether the largest companies differin performance from the performance of the 1000 companies in theShareholder Scoreboard. Clearly state the null and alternativehypotheses.

B) Compute the test statistic.

Please copy your R code andthe result and paste them here.

C) At 5% significance level, compute the critical value for thetest statistic and the p value for the test. Draw yourconclusion.

Please copy your R code andthe result and paste them here.

D) Use the function chisq.test() in R to run the test directlyto confirm your results above are correct.

Please copy your R code andthe result and paste them here.

Answer & Explanation Solved by verified expert
4.3 Ratings (630 Votes)
Hypothesis H1 At least one proportion is differentTeststatistic Where Oi Observed frequencyEi Expected frequencyEi NPiCalculation Test statistic 115Critical    See Answer
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