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webassign.net 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.t 24 16 22 14 12 13 17 22 15 19 23 13 11 18 The sample mean is 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 = 20. 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 o = 5.5. Do these data indicate that the P/E ratio of all U.S. bank stocks is less than 20? Use a = 0.01. (a) What is the level of significance? State the null and alternate hypotheses. Will you use a left-tailed, right- tailed, or two-tailed test? O Ho: u # 20; H1: µ = 20; two-tailed O Ho: H = 20; H1: µ > 20; right-tailed O Ho: H = 20; H1: µ < 20; left-tailed O Ho: H = 20; H1: µ # 20; two-tailed (b) What sampling distribution will you use? Explain the rationale for your choice of sampling distribution. O The Student's t, since n is large with unknown ơ. O The standard normal, since we assume that x has a normal distribution with known ơ. O The Student's t, since we assume that x has a normal distribution with known o. O The standard normal, since we assume that x has a normal distribution with unknown o. 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.) Sketch the sampling distribution and show the area corresponding to the P-value. O-3 -2 O-3 -2 -1

webassign.net 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.t 24 16 22 14 12 13 17 22 15 19 23 13 11 18 The sample mean is 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 = 20. 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 o = 5.5. Do these data indicate that the P/E ratio of all U.S. bank stocks is less than 20? Use a = 0.01. (a) What is the level of significance? State the null and alternate hypotheses. Will you use a left-tailed, right- tailed, or two-tailed test? O Ho: u # 20; H1: µ = 20; two-tailed O Ho: H = 20; H1: µ > 20; right-tailed O Ho: H = 20; H1: µ < 20; left-tailed O Ho: H = 20; H1: µ # 20; two-tailed (b) What sampling distribution will you use? Explain the rationale for your choice of sampling distribution. O The Student's t, since n is large with unknown ơ. O The standard normal, since we assume that x has a normal distribution with known ơ. O The Student's t, since we assume that x has a normal distribution with known o. O The standard normal, since we assume that x has a normal distribution with unknown o. 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.) Sketch the sampling distribution and show the area corresponding to the P-value. O-3 -2 O-3 -2 -1

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.4: Distributions Of Data
Problem 19PFA
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webassign.net 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.t 24 16 22 14 12 13 17 22 15 19 23 13 11 18 The sample mean is 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 = 20. 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 o = 5.5. Do these data indicate that the P/E ratio of all U.S. bank stocks is less than 20? Use a = 0.01. (a) What is the level of significance? State the null and alternate hypotheses. Will you use a left-tailed, right- tailed, or two-tailed test? O Ho: u # 20; H1: µ = 20; two-tailed O Ho: H = 20; H1: µ > 20; right-tailed O Ho: H = 20; H1: µ < 20; left-tailed O Ho: H = 20; H1: µ # 20; two-tailed (b) What sampling distribution will you use? Explain the rationale for your choice of sampling distribution. O The Student's t, since n is large with unknown ơ. O The standard normal, since we assume that x has a normal distribution with known ơ. O The Student's t, since we assume that x has a normal distribution with known o. O The standard normal, since we assume that x has a normal distribution with unknown o. 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.) Sketch the sampling distribution and show the area corresponding to the P-value. O-3 -2 O-3 -2 -1
Transcribed Image Text:webassign.net 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.t 24 16 22 14 12 13 17 22 15 19 23 13 11 18 The sample mean is 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 = 20. 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 o = 5.5. Do these data indicate that the P/E ratio of all U.S. bank stocks is less than 20? Use a = 0.01. (a) What is the level of significance? State the null and alternate hypotheses. Will you use a left-tailed, right- tailed, or two-tailed test? O Ho: u # 20; H1: µ = 20; two-tailed O Ho: H = 20; H1: µ > 20; right-tailed O Ho: H = 20; H1: µ < 20; left-tailed O Ho: H = 20; H1: µ # 20; two-tailed (b) What sampling distribution will you use? Explain the rationale for your choice of sampling distribution. O The Student's t, since n is large with unknown ơ. O The standard normal, since we assume that x has a normal distribution with known ơ. O The Student's t, since we assume that x has a normal distribution with known o. O The standard normal, since we assume that x has a normal distribution with unknown o. 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.) Sketch the sampling distribution and show the area corresponding to the P-value. O-3 -2 O-3 -2 -1
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