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 simply overpriced. 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 16 8. 49 44 20 27 8. 19 12 31 67 51 26 19 18 32
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 simply overpriced. 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 16 8. 49 44 20 27 8. 19 12 31 67 51 26 19 18 32
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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Question
(a) Use a calculator with
x = | |
s = |
(b) Find a 90% confidence interval for the P/E population mean μ of all large U.S. companies. (Round your answers to one decimal place.)
lower limit | |
upper limit |
(c) Find a 99% confidence interval for the P/E population mean μ of all large U.S. companies. (Round your answers to one decimal place.)
lower limit | |
upper limit |
![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 simply overpriced. 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
16
8.
49
44
20
27
8.
19
12
31
67
51
26
19
18
32](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fac5c3651-2588-4091-bb5f-d18bb76ef2ee%2F50eea307-4fb7-4f40-a9fc-4114ef80af03%2F8r744f.png&w=3840&q=75)
Transcribed Image Text: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 simply overpriced. 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
16
8.
49
44
20
27
8.
19
12
31
67
51
26
19
18
32
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