Question
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.
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 companies with a lower P/E ratio. An analyst takes a sample of five firms in the footwear industry and records their P/E ratios as: 26, 13, 21, 16, and 21.(You may find it useful to reference thettable.) Let these ratios represent a random sample drawn from a normally distributed population. Click here for the Excel Data File Construct the 90% confidence interval for the mean P/E ratio for the entire footwear industry.(Round final answers to 1 decimal place.)
Confidence interval _______ to _________.
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