The price-earnings ratio for firms in a given industry follows the normal distribution. In this industry, a firm whose price-ear
1 answer:
Answer:
The correct answer is
A. 16%
Step-by-step explanation:
The zscore is used to solve problems of normally distributed samples.
This score indicates the percentage of a certain measure. It can be found looking at the z table.
For example, if a measure has a percentile of 75%, it is in the 100%-75% = highest 25 percent of all the measures.
has a pvalue 0.8413. So it is in the highest 1-0.8413 = 0.1587 = 16% percent of firms in the industry.
The correct answer is
A. 16%
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