Are Price/earnings Ratios Typically Different for Firms in the Energy

question 12

Multiple Choice

Are price/earnings ratios typically different for firms in the energy equipment sector and firms in the hotel, restaurant and leisure sector? To answer this question, 15 firms in each sector are randomly selected and the price/earnings ratios recorded for each. Which of the following is the better method for testing whether the sectors typically differ in price/earnings ratio?

• A)Sign test
• B)Data transformation and t-confidence interval of transformed data
• C)Mann-Whitney Test
• D)Independent samples t-test

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Definitions:

Duchenne's

A genetic disorder characterized by progressive muscle degeneration and weakness due to the alterations of a protein called dystrophin that helps keep muscle cells intact.

Pathology Present

Indicates the existence of a disease or abnormal condition in a given specimen or patient.

Muscle Stiffness

A condition characterized by tightness in the muscles, potentially leading to discomfort or difficulty in moving.

Muscles

Tissue found in the body of animals and humans which has the ability to contract, enabling movement.