An analyst is trying to determine whether the prices of certain stocks on the NASDAQ are independent of the industry to which they belong. She examines four industries and, classifies the stock prices in these industries into one of three categories (high-priced, average-priced, low-priced).
Industry
Stock Price I II III IV
High 20 8 20 22
Average 34 29 11 16
Low 9 15 8 13

Click here for the Excel Data File

a. Choose the competing hypotheses to determine whether stock price depends on the industry.
- H0: Stock price is dependent on the industry.; HA: Stock price is independent on the industry.
- H0: Stock price is independent of the industry.; HA: Stock price is dependent on the industry.