The price to earnings ratio (P/E) is an important tool in financial work. A random sample of 14 large U.S. banks (J. P. Morgan, Bank of America, and others) gave the following P/E ratios.† 24 16 22 14 12 13 17 22 15 19 23 13 11 18 The sample mean is x ≈ 17.1. Generally speaking, a low P/E ratio indicates a "value" or bargain stock. Suppose a recent copy of a magazine indicated that the P/E ratio of a certain stock index is μ = 18. Let x be a random variable representing the P/E ratio of all large U.S. bank stocks. We assume that x has a normal distribution and σ = 4.1. Do these data indicate that the P/E ratio of all U.S. bank stocks is less than 18? Use α = 0.05. Compute the z value of the sample test statistic. (Round your answer to two decimal places.) ____________________? (c) Find (or estimate) the P-value. (Round your answer to four decimal places.)
The price to earnings ratio (P/E) is an important tool in financial work. A random sample of 14 large U.S. banks (J. P. Morgan, Bank of America, and others) gave the following P/E ratios.†
| 24 | 16 | 22 | 14 | 12 | 13 | 17 | 22 | 15 | 19 | 23 | 13 | 11 | 18 |
The sample mean is
Generally speaking, a low P/E ratio indicates a "value" or bargain stock. Suppose a recent copy of a magazine indicated that the P/E ratio of a certain stock index is μ = 18. Let x be a random variable representing the P/E ratio of all large U.S. bank stocks. We assume that x has a
Compute the z value of the sample test statistic. (Round your answer to two decimal places.)
____________________?
(c) Find (or estimate) the P-value. (Round your answer to four decimal places.)
__________________?
_______________________________________
Nationally, about 11% of the total U.S. wheat crop is destroyed each year by hail.† An insurance company is studying wheat hail damage claims in a county in Colorado. A random sample of 16 claims in the county reported the percentage of their wheat lost to hail.
| 14 | 8 | 7 | 10 | 14 | 18 | 13 | 9 |
| 7 | 10 | 26 | 20 | 15 | 10 | 14 | 7 |
The sample mean is x = 12.6%. Let x be a random variable that represents the percentage of wheat crop in that county lost to hail. Assume that x has a normal distribution and σ = 5.0%. Do these data indicate that the percentage of wheat crop lost to hail in that county is different (either way) from the national mean of 11%? Use α = 0.01.
Compute the z value of the sample test statistic. (Round your answer to two decimal places.)
________?
(c) Find (or estimate) the P-value. (Round your answer to four decimal places.)
__________?
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