Question

The data below shown in table are related to randomly sample seven companies from the handbook of common stocks and records the P/E ratios of each of these companies at the end of the year 1 and at the end of year 2 are given below. Use α = 0.01 to test whether there is significant difference in the average P/E ratio between year 1 and year 2. Company 2001 P/E Ratio 2002 P/E Ratio 1 32 39 2 11 15 3 21 35 4 17 13 5 30 41 6 38 39 7 14 22

Answer 1

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