Title: A portfolio manager was analyzing the price-earnings ratio for this year's performance. His boss ... Post by: everlyn85 on Jan 26, 2018 A portfolio manager was analyzing the price-earnings ratio for this year's performance. His boss said that the average price-earnings ratio was 20 for the many stocks, which his firm had traded, but he felt that figure was too high. The portfolio manager randomly selected a sample of 50 P/E ratios and found a mean of 18.17 and standard deviation of 4.60 . Assume that the population is normally distributed and test at the 0.01 level of significance. The decision is: Because the test statistic t = 2.81 is greater than 2.33, reject H0 . At the 0.01 level, the sample data suggest that the average P/E ratio for the stocks is less than 20.
Indicate whether the statement is true or false Title: A portfolio manager was analyzing the price-earnings ratio for this year's performance. His boss ... Post by: tdubb1992 on Jan 26, 2018 Content hidden
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