Chad Perrone is a financial analyst in Boston studying the annual return data for the health and information technology industries. He randomly samples 20 firms in each industry and notes each firm’s annual return. A portion of the data is shown in the accompanying table; the entire data set, labeled Health_Info, can be found on the text website.

HealthInformation Technology

10.29%...............................4.77%

32.17..........1.14

: ........... :

13.21..........22.61

In a report, use the sample information to:

1. Provide descriptive statistics and comment on the reward and risk in each industry.

2. Determine whether the average returns in each industry differ at the 5% significance level. Assume that returns are normally distributed and that the population variances are unequal.