[Solution] In a survey of 200 publicly-traded companies, the average price-earnings ration was 18.5 with a standard deviation of 8.2. Find a 95% confidence


Question: In a survey of 200 publicly-traded companies, the average price-earnings ration was 18.5 with a standard deviation of 8.2.

  1. Find a 95% confidence interval for the mean price-earnings ratio for all publicly-traded companies.
  2. Test the hypothesis (at the 5% level of significance) that the average price-earnings ratio has risen from its historical average of 16.8?
  3. What is the p-value?

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