Estimate the population mean price-earnings ratio

Assignment Help Business Economics

Reference no: EM131090423

The price-earnings ratio for all companies whose shares are traded on a specific stock exchange follow a normal distribution with a standard deviation of 3.8. A random sample of these companies is selected in order to estimate the population mean price-earnings ratio. Complete parts (a) through (c). (a) How large a sample is necessary in order to ensure that the probability that the sample mean differs from the population mean by more than 1.3 is less than 0.05? (b) Without doing the calculations, state whether a larger or smaller sample size compared to the sample size in part (a) would be required to guarantee that the probability of the sample mean differing from the population mean by more than 1.3 is less than 0.10. (c) Without doing the calculations, state whether a larger or smaller sample size compared to the sample size in part (a) would be required to guarantee that the probability of the sample mean differing from the population mean by more than 0.9 is less than 0.05.

Reference no: EM131090423

Questions Cloud

What is the case against an increase in the gas tax : what is the case against an increase in the gas tax to the European level?

Tort system were deemed method of social insurance : If the tort system were deemed a method of social insurance rather than one of deterrence of uneconomical accidents, would awards in tort cases be on average higher or lower than under the deterrence rationale? (Using the perspective of economics)

Either frictional-structural or cyclical unemployment : Classify each of the following situations as either frictional, structural, or cyclical unemployment.

Difference in shift in demand-change in quantity demanded : With respect to three goods- ice cream, green tea, and digital cameras, what does it mean when your preference for, and satisfaction. What is the difference between a “shift in demand” (an increase or decrease in demand) and a “change in the quantity..

Estimate the population mean price-earnings ratio : The price-earnings ratio for all companies whose shares are traded on a specific stock exchange follow a normal distribution with a standard deviation of 3.8. A random sample of these companies is selected in order to estimate the population mean pri..

What types of polices were actually implemented : In the most recent economic downturn, what types of polices were actually implemented (fiscal, monastery, or both?) to stimulate the economy? Provide examples of the policies and tell if it was a success, and why?

Explain the ways in which the problems of social science : Explain the ways in which the problems of social science differ from those of the exact natural sciences? what are the advantahes of the interdiciplinary approach to the study of many social problem?

Adjusted trial balance and prior period''s balance sheet : On pages 4 and 5 of this document, you will find the adjusted trial balance and the prior period balance sheet for Be Prepared Inc., a corporation.

The labor-force participation rate : Consider the economy whose data appear in the table below. Working-age population 100,000 Labor force 80,000 Unemployed 12,000 Instructions: The unemployment rate is %. The labor-force participation rate is %.

User Account

All Pages