Socially conscious investors screen out stocks of alcohol and tobacco makers, firms with poor environmental records, and companies with poor labor practices. Some examples of "good," socially conscious companies are Johnson and Johnson, Dell Computers, Bank of America, and Home Depot. The question is, are such stocks overpriced? One measure of value is the P/E, or price-to-earnings ratio. High P/E ratios may indicate a stock is overpriced. For the S&P Stock Index of all major stocks, the mean P/E ratio is ? = 19.4. A random sample of 36 "socially conscious" stocks gave a P/E ratio sample mean of x = 17.8, with sample standard deviation s = 5.8. Does this indicate that the mean P/E ratio of all socially conscious stocks is different (either way) from the mean P/E ratio of the S&P Stock Index? Use ? = 0.05. I need help with sketching (d) and (e) Socially conscious investors screen out stocks of alcohol and tobacco makers, firms with poor environmental records, and companies with poor labor practices. Some examples of "good," socially conscious companies are Johnson and Johnson, Dell Computers, Bank of America, andHome Depot. The question is, are such stocks overpriced? One measure of value is the P/E, or price-to-earnings ratio. High P/E ratios may indicate a stock is overpriced. For the S&P Stock Index of all major stocks, the mean P/E ratio is u = 19.4. A random sample of 36 "sociallyconscious" stocks gave a P/E ratio sample mean of x = 17.8, with sample standard deviation s = 5.8. Does this indicate that the mean P/E ratio of all socially conscious stocks is different (either way) from the mean P/E ratio of the S&P Stock Index? Use a = 0.05.(a) What is the level of significance?State the null and alternate hypotheses.Ο Η, μ> 19.4; H : μ = 19.4О на: и 19.4; н,: и - 19.4Ο Hg: μ= 19.4; H: μ > 19.4Ο Hg μ- 19.4; Hj' μ < 19.4O H.: H = 19.4; H,: µ # 19.4(b) What sampling distribution will you use? Explain the rationale for your choice of sampling distribution.O The standard normal, since the sample size is large and o is known.O The Student's t, since the sample size is large and o is unknown.O The Student's t, since the sample size is large and o is known.O The standard normal, since the sample size is large and o is unknown.What is the value of the sample test statistic? (Round your answer to three decimal places.)(c) Estimate the P-value.O P-value > 0.250O 0.100 < P-value < 0.250O 0.050 < P-value < 0.100O 0.010 < P-value < 0.050O P-value < 0.010 Sketch the sampling distribution and show the area corresponding to the P-value.ba-4-224Cd-2-2(d) Based on your answers in parts (a) to (c), will you reject or fail to reject the null hypothesis? Are the data statistically significant at level a?O At the a = 0.05 level, we reject the null hypothesis and conclude the data are statistically significant.O At the a = 0.05 level, we reject the null hypothesis and conclude the data are not statistically significant.O At the a = 0.05 level, we fail to reject the null hypothesis and conclude the data are statistically significant.O At the a = 0.05 level, we fail to reject the null hypothesis and conclude the data are not statistically significant.(e) Interpret your conclusion in the context of the application.O There is sufficient evidence at the 0.05 level to conclude that the mean P/E ratio of all socially conscious stocks differs from the mean P/E ratio of the S&P Stock Index.O There is insufficient evidence at the 0.05 level to conclude that the mean P/E ratio of all socially conscious stocks differs from the mean P/E ratio of the S&P Stock Index.

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Description: Socially conscious investors screen out stocks of alcohol and tobacco makers, firms with poor environmental records, and companies with poor labor practices. Some examples of "good," socially conscious companies are Johnson and Johnson, Dell Computer

It is given that the sample size is 36, the sample mean is 17.8 and the standard deviation is 5.8.…

Socially conscious investors screen out stocks of alcohol and tobacco makers, firms with poor environmental records, and companies with poor labor practices. Some examples of "good," socially conscious companies are Johnson and Johnson, Dell Computers, Bank of America, an Home Depot. The question is, are such stocks overpriced? One measure of value is the P/E, or price-to-earnings ratio. High P/E ratios may indicate a stock is overpriced. For the S&P Stock Index of all major stocks, the mean P/E ratio is a- 19.4. A random sample of 36 "socially conscious" stocks gave a P/E ratio sample mean of x- 17.8, with sample standard deviation s- 5.8. Does this indicate that the mean P/E ratio of all socially conscious stocks is different (either way) from the mean P/E ratio of the S&P Stock Index? Use a - 0.05. (a) What is the level significance? State the null and alternate hypotheses. O Hoi H > 19.4; H- 19.4 OHoi H+ 19.4; H,i µ = 19.4 O Hại u- 19.4; H: > 19.4 O Hoi H- 19.4; Hạ: # < 19.4 O Hoi - 19.4; Hạ: H= 19.4 (b) What sampling distribution will you use? Explain the rationale for your choice O The standard normal, since the sample size is large and o is known. O The Student's t, since the sample size is large and a is unknown. sampling distribution. O The Student's t, since the sample size is large and e is known. O The standard normal, since the sample size is large and a is unknown. What is the value of the sample test statistic? (Round your answer to three decimal places.) (c) Estimate the P-value. O P-value > 0.250 O 0.100 < P-value <0.250 O 0.050 < P-value < 0.100 O 0.010 < P-value < 0.050 O P-value < 0.010

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Socially conscious investors screen out stocks of alcohol and tobacco makers, firms with poor environmental records, and companies with poor labor practices. Some examples of "good," socially conscious companies are Johnson and Johnson, Dell Computers, Bank of America, and Home Depot. The question is, are such stocks overpriced? One measure of value is the P/E, or price-to-earnings ratio. High P/E ratios may indicate a stock is overpriced. For the S&P Stock Index of all major stocks, the mean P/E ratio is ? = 19.4. A random sample of 36 "socially conscious" stocks gave a P/E ratio sample mean of x = 17.8, with sample standard deviation s = 5.8. Does this indicate that the mean P/E ratio of all socially conscious stocks is different (either way) from the mean P/E ratio of the S&P Stock Index? Use ? = 0.05.

I need help with sketching (d) and (e)

Sketch the sampling distribution and show the area corresponding to the P-value.
b
a
-4
-2
2
4
C
d
-2
-2
(d) Based on your answers in parts (a) to (c), will you reject or fail to reject the null hypothesis? Are the data statistically significant at level a?
O At the a = 0.05 level, we reject the null hypothesis and conclude the data are statistically significant.
O At the a = 0.05 level, we reject the null hypothesis and conclude the data are not statistically significant.
O At the a = 0.05 level, we fail to reject the null hypothesis and conclude the data are statistically significant.
O At the a = 0.05 level, we fail to reject the null hypothesis and conclude the data are not statistically significant.
(e) Interpret your conclusion in the context of the application.
O There is sufficient evidence at the 0.05 level to conclude that the mean P/E ratio of all socially conscious stocks differs from the mean P/E ratio of the S&P Stock Index.
O There is insufficient evidence at the 0.05 level to conclude that the mean P/E ratio of all socially conscious stocks differs from the mean P/E ratio of the S&P Stock Index.

Definition Definition Measure of central tendency that is the average of a given data set. The mean value is evaluated as the quotient of the sum of all observations by the sample size. The mean, in contrast to a median, is affected by extreme values. Very large or very small values can distract the mean from the center of the data. Arithmetic mean: The most common type of mean is the arithmetic mean. It is evaluated using the formula: μ = 1 N ∑ i = 1 N x i Other types of means are the geometric mean, logarithmic mean, and harmonic mean. Geometric mean: The nth root of the product of n observations from a data set is defined as the geometric mean of the set: G = x 1 x 2 ... x n n Logarithmic mean: The difference of the natural logarithms of the two numbers, divided by the difference between the numbers is the logarithmic mean of the two numbers. The logarithmic mean is used particularly in heat transfer and mass transfer. ln x 2 − ln x 1 x 2 − x 1 Harmonic mean: The inverse of the arithmetic mean of the inverses of all the numbers in a data set is the harmonic mean of the data. 1 1 x 1 + 1 x 2 + ...

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