The price-earnings (PE) ratios of a sample of stocks have a mean value of 10.5 and a standard deviation of 1.4. If the PE ratios have a bell shaped distribution, use the 68-95-99.7 Rule to estimate the percentage of PE ratios that fall between: A. 7.7 and 13.3. Percentage = 53.3 % B. 6.3 and 14.7. Percentage = % C. 9.1 and 11.9. % Percentage = %3D
The price-earnings (PE) ratios of a sample of stocks have a mean value of 10.5 and a standard deviation of 1.4. If the PE ratios have a bell shaped distribution, use the 68-95-99.7 Rule to estimate the percentage of PE ratios that fall between: A. 7.7 and 13.3. Percentage = 53.3 % B. 6.3 and 14.7. Percentage = % C. 9.1 and 11.9. % Percentage = %3D
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section: Chapter Questions
Problem 22SGR
Related questions
Question
Question says "Rule to estimate the percentage of PE ratios that fall between?
Expert Solution
Step 1
Given: Let X denotes the price-earnings such that X~N() where
Population mean,
Population SD,
Part a: Using the probability
by the empirical rule
Therefore, the required percentage is 95%.
Part b: Using the probability
by the empirical rule
Therefore, the required percentage is 99.7%.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, statistics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Glencoe Algebra 1, Student Edition, 9780079039897…
Algebra
ISBN:
9780079039897
Author:
Carter
Publisher:
McGraw Hill
Holt Mcdougal Larson Pre-algebra: Student Edition…
Algebra
ISBN:
9780547587776
Author:
HOLT MCDOUGAL
Publisher:
HOLT MCDOUGAL
Glencoe Algebra 1, Student Edition, 9780079039897…
Algebra
ISBN:
9780079039897
Author:
Carter
Publisher:
McGraw Hill
Holt Mcdougal Larson Pre-algebra: Student Edition…
Algebra
ISBN:
9780547587776
Author:
HOLT MCDOUGAL
Publisher:
HOLT MCDOUGAL