12. [0.13/0.28 Points] DETAILS PREVIOUS ANSWERS BBUNDERSTAT12 8.1.022. MY NOTES ASK YOUR TEACHER PRACTICE ANOTHER The price to earnings ratio (P/E) is an important tool in financial work. A random sample of 14 large U.S. banks (J. P. Morgan, Bank of America, and others) gave the following P/E ratios. + 24 16 22 14 12 13 17 22 15 19 23 13 11 18 The sample mean is x = 17.1. Generally speaking, a low P/E ratio indicates a "value" or bargain stock. Suppose a recent copy of a magazine indicated that the P/E ratio of a certain stock index is M = 18. Let x be a random variable representing the P/E ratio of all large U.S. bank stocks. We assume that x has a normal distribution and o = 3.5. Do these data indicate that the P/E ratio of all U.S. bank stocks is less than 18? Use a = 0.10. (a) What is the level of significance? State the null and alternate hypotheses. Will you use a left-tailed, right-tailed, or two-tailed test? Ho: M = 18; H, : M > 18; right-tailed O Ho: H # 18; H1: u = 18; two-tailed O Ho: H = 18; H1: H # 18; two-tailed Ho: H = 18; H1: u