00:01
The following is a solution for number 25.
00:02
When we look at the s &p price to earnings ratio, and we're asked to draw a normal probability plot and a box plot.
00:09
Now, i'm horrible at drawing, so i'm going to use software to do this.
00:12
So i typed in, if you go to stat, now you can do this with excel or minutab or sas or tie4, you know, whatever you want, or you can manually do it.
00:21
But here are the data values.
00:23
So this is the price to earnings ratios for, i think, like 14 different companies.
00:32
So i graph, this is the normal probability plot.
00:35
So i get this in stat plot.
00:36
So that's what it's kind of kind of look like.
00:38
And it does appear to be linear.
00:39
So the conditions for inference have been met here, at least on normality.
00:43
So if the normal probability plot appears to be roughly linear, then, you know, we're good to go.
00:49
So then if i go back to stat plot and i'm going to change.
00:53
So this is the normal probability plot...