One of the consequences of the economic meltdown has been a free fall of the stock markets
Question:
Firm P/E Ratio
Brown Shoe Co., Inc..... 20.54
Collective Brands, Inc. ..... 9.33
Crocs, Inc. .......... 22.63
DSW, Inc. .......... 14.42
Nike, Inc. .......... 18.68
Skechers USA, Inc. ..... 9.35
Timberland Co. ..... 14.93
a. State the null and the alternative hypotheses in order to test whether the P/E ratio of firms in the footwear industry differs from the overall average of 14.9.
b. What assumption regarding the population is necessary?
c. Use Excel to calculate the value of the test statistic and the exact p-value.
d. At α = 0.10, does the P/E ratio of firms in the footwear industry differ from the overall average of 14.9? Explain.
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Related Book For
Essentials Of Business Statistics Communicating With Numbers
ISBN: 9780078020544
1st Edition
Authors: Sanjiv Jaggia, Alison Kelly
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