HW Score: 0%, O of 16 pts Question Help O The price-earnings ratios for all companies whose shares are traded on a specific stock exchange followa normal distribution with a standard deviston of 43 Arandom 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 probablity that the sample mean differs from the population mean by more than 1.1s less than 0 107 The sample size must be at least 42. (Type a whole number) b. Without doing the calculations, state whether a larger or smaller sample size compared to the sample sze in part (a) wouid be requred to gurantee that the probability of the sample mean differing from the population mean by more than 1.1 is less than 005. Inco The sample size would need to be
Inverse Normal Distribution
The method used for finding the corresponding z-critical value in a normal distribution using the known probability is said to be an inverse normal distribution. The inverse normal distribution is a continuous probability distribution with a family of two parameters.
Mean, Median, Mode
It is a descriptive summary of a data set. It can be defined by using some of the measures. The central tendencies do not provide information regarding individual data from the dataset. However, they give a summary of the data set. The central tendency or measure of central tendency is a central or typical value for a probability distribution.
Z-Scores
A z-score is a unit of measurement used in statistics to describe the position of a raw score in terms of its distance from the mean, measured with reference to standard deviation from the mean. Z-scores are useful in statistics because they allow comparison between two scores that belong to different normal distributions.
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