A portfolio manager was analyzing the price-earnings ratio for this year's performance. His boss ...

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 rule is: Reject H0 if the calculated t > 2.68 or if t < -2.68.
  Indicate whether the statement is true or false