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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 tha 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. 11 35 19 13 15 21 40 18 60 72 20 29 53 16 26 21 14 21 27 10 12 47 14 33 14 18 17 20 19 13 25 23 27 16 49 44 20 27 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 one decimal place.) 25.17 S= 15.472 (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

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 tha 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. 11 35 19 13 15 21 40 18 60 72 20 29 53 16 26 21 14 21 27 10 12 47 14 33 14 18 17 20 19 13 25 23 27 16 49 44 20 27 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 one decimal place.) 25.17 S= 15.472 (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

Functions and Change: A Modeling Approach to College Algebra (MindTap Course List)
Functions and Change: A Modeling Approach to College Algebra (MindTap Course List)
6th Edition
ISBN:9781337111348
Author:Bruce Crauder, Benny Evans, Alan Noell
Publisher:Bruce Crauder, Benny Evans, Alan Noell
Chapter5: A Survey Of Other Common Functions
Section5.3: Modeling Data With Power Functions
Problem 6E: Urban Travel Times Population of cities and driving times are related, as shown in the accompanying...
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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 ratiost. 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 one decimal place.) x = 25.17 s = 15.472 (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 21.607 upper limit 28.733
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. 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 one decimal place.) x = 25.17 s = 15.472 (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 21.607 upper limit 28.733
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