Calculator with mean and sample standard deviation

Assignment Help Basic Statistics

Reference no: EM131134650

Finance: P/E Ratio The price of a share of stock divided by a 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 ratios (Reference: Forbes).

11	35	19	13	15	21	40	18	60	72	9	20
29	53	16	26	21	14	21	27	10	12	47	14
33	14	18	17	20	19	13	25	23	27	5	16
8	49	44	20	27	8	19	12	31	67	51	26
19	18	32

(a) Use a calculator with mean and sample standard deviation keys to verify that x = 25.2 and s = 15.5.

(b) Find a 90% confidence interval for the P/E population mean m of all large

U.S. companies.

(d) Interpretation 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?

(e) Check Requirements In previous problems, we assumed the x distribution was normal or approximately normal. Do we need to make such an assump- tion in this problem? Why or why not? Hint: See the central limit theorem in Section 6.5.

Reference no: EM131134650

Questions Cloud

Calculate the excess supply or demand for bp : What would be the clearing price for BP in the foreign exchange market - what would happen if both the US and the British governments fixed the price of BP at $1.45? Excess supply of BP / Excess demand for BP

Cost savings from a merger : In other words, we could realize substantial economies of scale. Therefore, the government should allow the merger. In light of the new guidelines concerning mergers, how would you react to this statement?

Practices to help them realign their strategic initiatives : The Senior Vice President of Human Resources has just informed you that she would like for you to research various HRM practices of Fortune 500 companies. This research will be presented to the board of trustees next month. They want to review other ..

Analyze the benefits for both students and the teacher : Analyze the benefits for both students and the teacher when instruction follows the UDL framework when compared to the practice of isolating learners and planning for specific modifications for individual students.

Calculator with mean and sample standard deviation : Finance: P/E Ratio The price of a share of stock divided by a 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 indi..

What is genetic equilibrium : What is genetic equilibrium? Citing good examples, explain the circumstances under which the Hardy-Weinburg principle does not apply

How videos used to implement counter health marketing : suggest how your colleagues' videos might be used to implement counter health marketing. Be specific and provide examples.

How does the acquisition affect x s annual profit : How many years will it take for X to recover the cost of acquiring Y?

Trying to reach phoenix and mistakenly getting : AT&T was running commercials in 1990 aimed at luring back customers who had switched to one of the other long-distance phone service providers. One such commercial shows a businessman trying to reach Phoenix and mistakenly getting Fiji, where a ha..

User Account

All Pages