AC, Ltd., a supplier of operating system software for personal computers, was planning the initial public offering of its stock in order to raise sufficient working capital to finance the development of a radically new, seventh-generation integrated system. With current earnings of $1.61 a share, AC and its underwriters were contemplating an offering price of $21, or about 13 times earnings. In order to check the appropriateness of this price, they randomly chose seven publicly traded software firms and found that their average price/earnings ratio 13 , and the sample standard deviation was 1.57 . At a = 0.02, can AC conclude that the stocks was of publicly traded software firms have an average P/E ratio that is significantly different from What are the confidence limits of acceptance region? 14.35 ?

AC, Ltd., a supplier of operating system software for personal computers, was planning the initial public offering of its stock in order to raise sufficient working capital to finance the development of a radically new, seventh-generation integrated system. With current earnings of $1.61 a share, AC and its underwriters were contemplating an offering price of $21, or about 13 times earnings. In order to check the appropriateness of this price, they randomly chose seven publicly traded software firms and found that their average price/earnings ratio 13 , and the sample standard deviation was 1.57 . At a = 0.02, can AC conclude that the stocks was of publicly traded software firms have an average P/E ratio that is significantly different from What are the confidence limits of acceptance region? 14.35 ?

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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Concept explainers

Estimation

A new framework of data analysis where the new statistical methods are used for interpreting the results and analyzing the data is known as estimation in statistics.

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Q6
AC, Ltd., a supplier of operating system software for personal computers, was planning the initial public
offering of its stock in order to raise sufficient working capital to finance the development of a radically new,
seventh-generation integrated system. With current earnings of $1.61 a share, AC and its underwriters were
contemplating an offering price of $21, or about 13 times earnings. In order to check the appropriateness of this
price, they randomly chose seven publicly traded software firms and found that their average price/earnings ratio
13 , and the sample standard deviation was
1.57 . At a = 0.02, can AC conclude that the stocks
was
of publicly traded software firms have an average P/E ratio that is significantly different from
14.35 ?
What are the confidence limits of acceptance region?

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