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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 ratios†. 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 find the sample mean x and sample standard deviation s. (Round your answers to four decimal places.)   x =   s =     (b) Find a 90% confidence interval for the P/E population mean ? 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 ? of all large U.S. companies. (Round your answers to one decimal place.)   lower limit       upper limit

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 ratios†. 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 find the sample mean x and sample standard deviation s. (Round your answers to four decimal places.)   x =   s =     (b) Find a 90% confidence interval for the P/E population mean ? 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 ? of all large U.S. companies. (Round your answers to one decimal place.)   lower limit       upper limit

Holt Mcdougal Larson Pre-algebra: Student Edition 2012
Holt Mcdougal Larson Pre-algebra: Student Edition 2012
1st Edition
ISBN:9780547587776
Author:HOLT MCDOUGAL
Publisher:HOLT MCDOUGAL
Chapter11: Data Analysis And Probability
Section: Chapter Questions
Problem 8CR
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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 ratios†.

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 find the sample mean x and sample standard deviation s. (Round your answers to four decimal places.)

 

x =  
s =  
 
(b) Find a 90% confidence interval for the P/E population mean ? 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 ? of all large U.S. companies. (Round your answers to one decimal place.)

 

lower limit      
upper limit      
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