How do you find the P value?? I dont just want the answer, I want to know HOW TO
ID: 3309840 • Letter: H
Question
How do you find the P value?? I dont just want the answer, I want to know HOW TO DO IT! Thank you very much!
The price to earnings rabo(PYE i$ an important tool in financial work. A ndom sample of 14 large us. banksR Margan, Bank of America, and others)save the following P/E ratios 24 16 22 14 12 13 17 22 15 19 23 13 11 18 The se pe mean is x 17.1 Generally speeking lo PVE eti indicates a value ar b gain stock. Suppose ecent copy f a m gezine dicated that the P/E etio of a certain stock index is assume that x has a normal dstrbution and -3.6. Do these data indicate that the P/E ratio of a U.S. bank stocks is less than 197 Use -0.01. 19 Let be a andam eria e re resenting the P E tio of all large u bank stocks we ) what is the level of signincance? null and alternateh Will you uaert taied, nighttailed, or to talled tost? Mo: 19, Hli -19; two-tailed Mg: -19; H1-K > 19; right-tailed H0: -19; H1: 19; left-tailed Ma: p = 19; H1: K 19; two-tailed What sampling distribution will you use? Explain the rationale for your choice of The standard normal, since we assume that x has a normal distributan with known . The Student's t, since n is lerge with unknown . -The stendard normal, since we assume that x hes normal distribution with unknown . What is the velue of the semple test stetistic? (Round your answer to two decimel places) -2.00 Pind (or estimste) the P-value. (Round your answer to four decimal places.)Explanation / Answer
Given that,
population mean(u)=19
standard deviation, =3.6
sample mean, x =17.1
number (n)=14
null, Ho: =19
alternate, H1: <19
level of significance, = 0.01
from standard normal table,left tailed z /2 =2.33
since our test is left-tailed
reject Ho, if zo < -2.33
we use test statistic (z) = x-u/(s.d/sqrt(n))
zo = 17.1-19/(3.6/sqrt(14)
zo = -1.9748
| zo | = 1.9748
critical value
the value of |z | at los 1% is 2.33
we got |zo| =1.9748 & | z | = 2.33
make decision
hence value of |zo | < | z | and here we do not reject Ho
p-value : left tail - ha : ( p < -1.9748 ) = 0.0241
hence value of p0.01 < 0.0241, here we do not reject Ho
ANSWERS
---------------
a.
null, Ho: =19
alternate, H1: <19
b.
normal distribution with standard deviation
test statistic: -1.9748 = -2.0
critical value: -2.33
decision: do not reject Ho
c.
p-value: 0.0241
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