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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The measure of efficiency in which goods and services are produced, often evaluated in terms of the output generated per unit of input.

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The unwritten, informal agreement between an employer and employee that outlines mutual expectations, commitments, and obligations.

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