MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN: 9781119256830
Author: Amos Gilat
Publisher: John Wiley & Sons Inc
Bartleby Related Questions Icon

Related questions

bartleby

Concept explainers

Topic Video
Question
The price of a share of stock divided by the company's estimated future earnings per share is called the P/E ratio. High P/E ratios usually indicate "growth" stocks, or maybe stocks that are
simply overpriced. Low P/E ratios indicate "value" stocks or bargain stocks. A random sample of 51 of the largest companies in the United States gave the following P/E ratiost.
9 20
11 35 19 13 15 21
29 53 16 26 21 14 21 27 10 12 47 14
40 18 60 72
33 14
8 49
5 16
8 19 12 31 67 51 26
18 17 20 19 13 25 23 27
44 20 27
19 18 32
(a) Use a calculator with mean and sample standard deviation keys to find the sample mean x and sample standard deviation s. (Round your answers to one decimal place.)
(b) Find a 90% confidence interval for the P/E population mean u of all large U.S. companies. (Round your answers to one decimal place.)
lower limit
upper limit
(c) Find a 99% confidence interval for the P/E population mean u of all large U.S. companies. (Round your answers to one decimal place.)
lower limit
upper limit
(d) Bank One (now merged with J. P. Morgan) had a P/E of 12, AT&T Wireless had a P/E of 72, and Disney had a P/E of 24. Examine the confidence intervals in parts (b) and (c).
How would you describe these stocks at the time the sample was taken?
We can say Bank One is below average, AT&T Wireless is above average, and Disney is above average.
We can say Bank One is below average, AT&T Wireless is above average, and Disney is below average.
O We can say Bank One is above average, AT&T Wireless is below average, and Disney falls close to the average.
O We can say Bank One is below average, AT&T Wireless is above average, and Disney falls close to the average.
(e) In previous problems, we assumed the x distribution was normal or approximately normal. Do we need to make such an assumption in this problem? Why or why not? Hint:
Use the central limit theorem.
O Yes. According to the central limit theorem, when ns 30, the x distribution is approximately normal.
O No. According to the central limit theorem, when n 2 30, the x distribution is approximately normal.
expand button
Transcribed Image Text:The price of a share of stock divided by the company's estimated future earnings per share is called the P/E ratio. High P/E ratios usually indicate "growth" stocks, or maybe stocks that are simply overpriced. Low P/E ratios indicate "value" stocks or bargain stocks. A random sample of 51 of the largest companies in the United States gave the following P/E ratiost. 9 20 11 35 19 13 15 21 29 53 16 26 21 14 21 27 10 12 47 14 40 18 60 72 33 14 8 49 5 16 8 19 12 31 67 51 26 18 17 20 19 13 25 23 27 44 20 27 19 18 32 (a) Use a calculator with mean and sample standard deviation keys to find the sample mean x and sample standard deviation s. (Round your answers to one decimal place.) (b) Find a 90% confidence interval for the P/E population mean u of all large U.S. companies. (Round your answers to one decimal place.) lower limit upper limit (c) Find a 99% confidence interval for the P/E population mean u of all large U.S. companies. (Round your answers to one decimal place.) lower limit upper limit (d) Bank One (now merged with J. P. Morgan) had a P/E of 12, AT&T Wireless had a P/E of 72, and Disney had a P/E of 24. Examine the confidence intervals in parts (b) and (c). How would you describe these stocks at the time the sample was taken? We can say Bank One is below average, AT&T Wireless is above average, and Disney is above average. We can say Bank One is below average, AT&T Wireless is above average, and Disney is below average. O We can say Bank One is above average, AT&T Wireless is below average, and Disney falls close to the average. O We can say Bank One is below average, AT&T Wireless is above average, and Disney falls close to the average. (e) In previous problems, we assumed the x distribution was normal or approximately normal. Do we need to make such an assumption in this problem? Why or why not? Hint: Use the central limit theorem. O Yes. According to the central limit theorem, when ns 30, the x distribution is approximately normal. O No. According to the central limit theorem, when n 2 30, the x distribution is approximately normal.
Expert Solution
Check Mark
Knowledge Booster
Background pattern image
Statistics
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.
Similar questions
Recommended textbooks for you
Text book image
MATLAB: An Introduction with Applications
Statistics
ISBN:9781119256830
Author:Amos Gilat
Publisher:John Wiley & Sons Inc
Text book image
Probability and Statistics for Engineering and th...
Statistics
ISBN:9781305251809
Author:Jay L. Devore
Publisher:Cengage Learning
Text book image
Statistics for The Behavioral Sciences (MindTap C...
Statistics
ISBN:9781305504912
Author:Frederick J Gravetter, Larry B. Wallnau
Publisher:Cengage Learning
Text book image
Elementary Statistics: Picturing the World (7th E...
Statistics
ISBN:9780134683416
Author:Ron Larson, Betsy Farber
Publisher:PEARSON
Text book image
The Basic Practice of Statistics
Statistics
ISBN:9781319042578
Author:David S. Moore, William I. Notz, Michael A. Fligner
Publisher:W. H. Freeman
Text book image
Introduction to the Practice of Statistics
Statistics
ISBN:9781319013387
Author:David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:W. H. Freeman