Japan P/E Ratio 155 26 United States P/E Ratio 12 23

MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
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Chapter1: Starting With Matlab
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A company's price/earnings (P/E) ratio is the company's current stock price divided by the latest 12 months' earnings per share. Suppose the following table shows the P/E ratios
for a sample of 10 Japanese companies and 12 U.S. companies.
Japan
United States
P/E Ratio
P/E Ratio
155
12
26
23
18
23
127
45
36
21
215
13
63
26
664
13
35
26
68
38
17
13
Is the difference between the P/E ratios for the two countries significant? Use the MWW test and a = 0.01 to support your conclusion.
State the null and alternative hypotheses.
H: Median for Japanese companies - Median for U.S. companies 20
H: Median for Japanese companies - Median for U.S. companies < 0
ⒸH: Median for Japanese companies - Median for U.S. companies > 0
H₂: Median for Japanese companies - Median for U.S. companies = 0
ⒸH: Median for Japanese companies - Median for U.S. companies ≤ 0
H₂: Median for Japanese companies - Median for U.S. companies > 0
OH: The two populations of P/E ratios are not identical.
H: The two populations of P/E ratios are identical.
ⒸH: The two populations of P/E ratios are identical.
H₂: The two populations of P/E ratios are not identical.
Find the value of the test statistic.
W =
Find the p-value. (Round your answer to four decimal places.)
p-value =
Transcribed Image Text:A company's price/earnings (P/E) ratio is the company's current stock price divided by the latest 12 months' earnings per share. Suppose the following table shows the P/E ratios for a sample of 10 Japanese companies and 12 U.S. companies. Japan United States P/E Ratio P/E Ratio 155 12 26 23 18 23 127 45 36 21 215 13 63 26 664 13 35 26 68 38 17 13 Is the difference between the P/E ratios for the two countries significant? Use the MWW test and a = 0.01 to support your conclusion. State the null and alternative hypotheses. H: Median for Japanese companies - Median for U.S. companies 20 H: Median for Japanese companies - Median for U.S. companies < 0 ⒸH: Median for Japanese companies - Median for U.S. companies > 0 H₂: Median for Japanese companies - Median for U.S. companies = 0 ⒸH: Median for Japanese companies - Median for U.S. companies ≤ 0 H₂: Median for Japanese companies - Median for U.S. companies > 0 OH: The two populations of P/E ratios are not identical. H: The two populations of P/E ratios are identical. ⒸH: The two populations of P/E ratios are identical. H₂: The two populations of P/E ratios are not identical. Find the value of the test statistic. W = Find the p-value. (Round your answer to four decimal places.) p-value =
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