A Portfolio Manager Was Analyzing the Price-Earnings Ratio for This $\mu$

question 169

True/False

A portfolio manager was analyzing the price-earnings ratio for this year's performance.His boss said that the average price-earnings ratio was 20 for the many stocks,which his firm had traded,but he felt that figure was too high.The portfolio manager randomly selected a sample of 50 P/E ratios and found a mean of 18.17 and standard deviation of 4.60.Assume that the population is normally distributed and test at the 0.01 level of significance.
The correct hypotheses are:
H₀: $\mu$ = 20,H₁: $\mu$ > 20

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