The price of a share of stock divided by the company's estimated future earnings per share is called the P/E ratio. High P/E ratios usually indicate "growth" stocks, or maybe stocks that are simplyoverpriced. Low P/E ratios indicate "value" stocks or bargain stocks. A random sample of 51 of the largest companies in the United States gave the following P/E ratiost. 11 35 19 13 15 21 40 18 60 72 9 20 29 53 16 26 21 14 21 27 10 12 47 14 33 14 18 17 20 19 13 25 23 27 5 16 8 49 44 20 27 8 19 12 31 67 51 26 19 18 32 (a) Use a calculator with mean and samplestandard deviation keys to find the sample mean x and sample standard deviation s. (Round your answers to four decimal places.) x = s =

The given 51 sample observations are:11, 35, 19, 13, 15, 21, 40, 18, 60, 72, 9, 20, 29, 53, 16, 26,…

Answered: The price of a share of stock divided…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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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.† 24 16 22 14 12 13 17 22 15 19 23 13 11 18 The sample mean is x ≈ 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 = 19. 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 σ = 4.8. Do these data indicate that the P/E ratio of all U.S. bank stocks is less than 19? Use α = 0.05. (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? H0: μ = 19; H1: μ > 19; right-tailedH0: μ = 19; H1: μ < 19; left-tailed H0: μ ≠ 19; H1: μ = 19; two-tailedH0: μ = 19; H1: μ ≠ 19; two-tailed (b) What sampling…
Suppose an Internet retailer would like to investigate the linear relationship between the amount of time in minutes a purchaser spends on its Web site and the amount of money he or she spends on an order. The table to the right shows the data from a random sample of
How productive are U.S. workers? One way to answer this question is to study annual profits per employee. A random sample of companies in computers (I), aerospace (II), heavy equipment (III), and broadcasting (IV) gave the following data regarding annual profits per employee (units in thousands of dollars). I II III IV 27.6 13.6 22.1 17.7 23.9 9.8 20.4 16.6 14.5 11.6 7.1 14.2 8.9 8.9 12.9 15.1 11.7 6.8 7.8 10.5 19.9 9.5 Shall we reject or not reject the claim that there is no difference in population mean annual profits per employee in each of the four types of companies? Use a 5% level of significance. (a) What is the level of significance?State the null and alternate hypotheses. Ho: ?1 = ?2 = ?3 = ?4; H1: Exactly two means are equal.Ho: ?1 = ?2 = ?3 = ?4; H1: Exactly three means are equal. Ho: ?1 = ?2 = ?3 = ?4; H1: Not all the means are equal.Ho: ?1 = ?2 = ?3 = ?4; H1: All four means are different. (b) Find SSTOT, SSBET, and SSW and check that SSTOT =…
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.† 24 16 22 14 12 13 17 22 15 19 23 13 11 18 The sample mean is x ≈ 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 = 19. 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 σ = 4.6. Do these data indicate that the P/E ratio of all U.S. bank stocks is less than 19? Use α = 0.01. (a) What is the level of significance? 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.)
The least-squares regression equation is y=761.7x+13,208 where y is the median income and x is the percentage of 25 years and older with at least a bachelor's degree in the region. The scatter diagram indicates a linear relation between the two variables with a correlation coefficient of 0.7483. Predict the median income of a region in which 20% of adults 25 years and older have at least a bachelor's degree.
HOME Realty claims that it can sell a detached, residential house faster than any other realty company. With the aim of examining HOME's claim, you sample 20 customers who sold a detached, residential house through HOME and record the selling times (in days) of the houses. Your data are summarized in the following histogram. Relative frequency 0.4- 0.3 0.35 0.20 0.2+ 0.20 0.15 0.10 0.1- 0.0- 0 10 20 30 Selling time (in days) 40 50 Based on the histogram, find the proportion of selling times in the sample that are at least 20 days. Write your answer as a decimal, and do not round your answer. 0 × 5
An article gave the following data on median worker pay (in thousands of dollars) and the 1-year percent change in stock price for the 13 highest paying companies in the United States. Percent Change in Stock Price Company Company 1 Company 2 Company 3 Company 4 Company 5 Company 6 Company 7 Company 8 Company 9 Company 10 Company 11 Company 12 Company 13 80 60 40 20 Median Worker Pay - 20 - 40 USE SALT 134.7 132.2 125.0 122.8 122.5 121.2 121.2 119.0 118.0 118.0 117.6 117.4 (a) Construct a scatterplot for these data. Percent Change in Stock Price 115.1 115 120 125 130 135 140 21.5 92.4 34.0 52.0 41.8 2.7 5.0 30.2 8.1 37.5 15.7 21.8 -44.8 Median Worker Pay Percent Change in Stock Price 80 60 40 20 - 20 -40 115 120 125 130 135 140 (b) Calculate the value of the correlation coefficient. (Round your answer to four decimal places.) Median Worker Pay Interpret the correlation coefficient. O There is a moderate, positive association between the percent change in stock price and median worker…
4.25
The following table shows the median income, in thousands of dollars, of American families for 2003 through 2008. Year 2003 2004 Income (thousands of dollars) 52.68 54.06 2005 56.19 2006 58.41 2007 2008 61.36 61.52 (a) Plot the data. H H 62 62 61 61 60 60 59 59 58 58 57 57 56 56 55 55 54 54 53 53 2004 2005 2006 2007 2008 2004 2005 2006 2007 2008 H H. 62 62 61 61 60 60 59 59 58 58 57 57 56 56 55 55 54 54 53 53 2004 2005 2006 2007 2008 2004 2005 2006 2007 2008 (b) Use exponential regression to construct an exponential model for the income data. (Let t be years since 2003 and H be the median household income in thousand of dollars.) OH = 62.520 x 0.967 OH = 57.370 x 1.010 OH = 71.932 x 0.856 OH = 49.035 x 1.245 O H = 52.587 x 1.035 (c) What was the yearly percentage growth rate in median family income during this period? (Use the model found in part (b). Round your answer to one decimal place.)
How productive are U.S. workers? One way to answer this question is to study annual profits per employee. A random sample of companies in computers (I), aerospace (II), heavy equipment (III), and broadcasting (IV) gave the following data regarding annual profits per employee (units in thousands of dollars). I II III IV 27.9 13.5 22.2 17.9 23.2 9.6 20.5 16.4 14.7 11.1 7.7 14.5 8.3 8.9 12.7 15.9 11.8 6.5 7.7 10.6 19.1 9.5 What are the degrees of freedom? (numerator) (denominator)(c) Find the P-value of the sample test statistic. P-value > 0.100 0.050 < P-value < 0.100 0.025 < P-value < 0.050 0.010 < P-value < 0.025 0.001 < P-value < 0.010 P-value < 0.001 (d) Based on your answers in parts (a) to (c), will you reject or fail to reject the null hypothesis? Since the P-value is greater than the level of significance at α = 0.05, we do not reject H0. Since the P-value is less than or equal to the level of significance at α = 0.05, we…
The price to earnings ratio (P/E) Is an Important tool in financial work. A random sample of 14 large U.S. banks (JP Morgan Chase, 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 x = 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 H = 18. 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 = 4.7. Do these data indicate that the P/E ratio of all U.S. bank stocks is less than 18? 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: H = 18; H1: H # 18; two-tailed O Ho: H = 18; H1: H 18; right-tailed %3D O Ho: H # 18; H1: H = 18; two-tailed (b) What sampling distribution will you use? Explain the rationale…
U.S. Civilian Labor Force (thousands) Year Labor Force Year Labor Force 2007 153,918 2012 155,628 2008 154,655 2013 155,151 2009 153,111 2014 156,238 2010 153,650 2015 157,957 2011 153,995 2016 159,640 1. Fit three trend models: linear, exponential, and quadratic. Which model would offer the most believable forecasts? 2. Make forecasts using the following fitted trend models for years 2017-2019. t Exponential 11 12 13

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