Fortune magazine (March 1997) reported the total returns to investors for the 10 years prior to 1996 and also for 1996 for 431 companies. The total returns for 10 of the companies are listed below. Using 0.05 level of significance, test the difference between mean change in percent return to investors. Total Return to Investors 1986-96 1996 Company Coca-Cola Mirage Resorts Merck 29.8% 27.9% 22.1% Microsoft 44.5% Johnson & Johnson 22.2% 43.8% 21.7% 21.9% 28.3% 11.8% Intel Pfizer Procter & Gamble Berkshire Hathaway S&P 500 43.3% 25.4% 24.0% 88.3% 18.1% 131.2% 34.0% 32.1% 6.2% 20.3%

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Fortune magazine (March 1997) reported the total returns to investors for the 10
years prior to 1996 and also for 1996 for 431 companies. The total returns for 10
of the companies are listed below. Using 0.05 level of significance, test the
difference between mean change in percent return to investors.
Total Return
to Investors
1986-96 1996
Company
Coca-Cola
Mirage Resorts
Merck
Microsoft
Johnson & Johnson
Intel
Pfizer
Procter & Gamble
Berkshire Hathaway
S&P 500
29.8%
27.9%
22.1%
44.5%
22.2%
43.8%
21.7%
21.9%
28.3%
11.8%
43.3%
25.4%
24.0%
88.3%
18.1%
131.2%
34.0%
32.1%
6.2%
20.3%
There is no significant difference between the net change of percentage
returns
Transcribed Image Text:Fortune magazine (March 1997) reported the total returns to investors for the 10 years prior to 1996 and also for 1996 for 431 companies. The total returns for 10 of the companies are listed below. Using 0.05 level of significance, test the difference between mean change in percent return to investors. Total Return to Investors 1986-96 1996 Company Coca-Cola Mirage Resorts Merck Microsoft Johnson & Johnson Intel Pfizer Procter & Gamble Berkshire Hathaway S&P 500 29.8% 27.9% 22.1% 44.5% 22.2% 43.8% 21.7% 21.9% 28.3% 11.8% 43.3% 25.4% 24.0% 88.3% 18.1% 131.2% 34.0% 32.1% 6.2% 20.3% There is no significant difference between the net change of percentage returns
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