Question: A price - earnings ratio or P / E ratio is calculated as a firm s share price compared to the income or profit earned

A price-earnings ratio or P/E ratio is calculated as a firms share price compared to the income or profit earned by the firm per share. Generally, a high P/E ratio suggests that investors are expecting higher earnings growth in the future compared to firms with a lower P/E ratio. The accompanying table shows a portion of the P/E ratios for 30 firms. a. Calculate the 25th,50th, and 75th percentiles A price-earnings ratio or P / E ratio is calculated as a firm's share price compared to the income or profit earned by the firm per share. Generally, a high P/E ratio suggests that investors are expecting higher earnings growth in the future compared to firms with a lower P / E ratio. The accompanying table shows a portion of P / E ratios for 30 firms. b. Calculate the value of the test statistic and the p-value.

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