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, within each industry, categorizes each stock according to its price (high-priced, average-priced, low-priced).
Industry
Stock Price I II III IV
High 20 12 14 18
Average 22 20 14 16
Low 11 12 8 13
Choose the competing hypotheses to determine whether stock price depends on the industry.
a. H0: Stock price is independent of the industry.; HA: Stock price is dependent of the industry.
b. H0: Stock price is dependent on the industry.; HA: Stock price is independent of the industry.