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In: Statistics and Probability

A stock market investor is interested in determining whether there is a significant difference in the...

A stock market investor is interested in determining whether there is a significant difference in the P/E (price to earnings) ratio for companies from one year to the next. Six companies are randomly selected and their P/E ratios for Year 1 and Year 2 are recorded. Are the P/E ratios for Year 1 greater than for Year 2? Use a 10% level of significance.

Company

c

Year 1

16

29

36

23

12

19

Year 2

13

25

31

20

9

14

State the null and alternative hypotheses for a one — sided test.

Find the differences.

Find the mean of the differences.

.

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orchestra answered 2 years ago
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