The price-earnings (PE) ratios of a sample of stocks have a mean value of 10.75 and a standard deviation of 1.7. If the PE ratios have a bell shaped distribution, use the 68-95-99.7 Rule to estimate the percentage of PE ratios that fall between: A. 9.05 and 12.45. Percentage = B. 5.65 and 15.85. Percentage = C. 7.35 and 14.15. Percentage =
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.
The price-earnings (PE) ratios of a sample of stocks have a
A. 9.05 and 12.45.
Percentage =
B. 5.65 and 15.85.
Percentage =
C. 7.35 and 14.15.
Percentage =
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