A research analyst examines annual returns (in percent) from Industry A, Industry B, and Industry C. The table below summarizes the relevant data which are also available on the text website, labeled Industry Returns.
a. Specify the competing hypotheses in order to test whether differences exist in the median returns of the three industries.
b. Calculate the value of the test statistic H.
c. At the 10% significance level, what is the critical value?
d. Do differences exist between the returns of the three industries? Explain.