Con?dence interval for the mean

Reference no: EM13985525

Many mutual funds use an investment approach involving owning stocks whose price/earn- ings multiples (P/Es) are less than the P/E of the S&P 500. The following data give P/Es of 49 companies a randomly selected mutual fund owns in a particular year.

6.8	5.6	8.5	8.5	8.4	7.5	9.3	9.4	7.8	7.1
9.9	9.6	9.0	9.4	13.7	16.6	9.1	10.1	10.6	11.1
8.9	11.7	12.8	11.5	12.0	10.6	11.1	6.4	12.3	12.3
11.4	9.9	14.3	11.5	11.8	13.3	12.8	13.7	13.9	12.9
14.2	14.0	15.5	16.9	18.0	17.9	21.8	18.4	34.3

Find a 98% con?dence interval for the mean P/E multiples. Interpret the result and state any assumptions you have made.

Reference no: EM13985525

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