Question

The following are the P/E ratios (price of stock divided by projected earnings per share) for 19 banks.

18, 25, 14, 31, 19, 21, 21, 23, 15, 29, 22, 23, 43, 22, 24, 22, 18, 20, 18

What are the 10th and 75th percentiles for the P/E ratios

A) 14 and 29
B) 15 and 25
C) 18 and 31
D) 18 and 24

Answer 1

The 10th and 75th percentiles for the P/E ratios are 15 and 29, respectively.

Step-by-step explanation:

The 10th and 75th percentiles for the P/E ratios can be determined by arranging the ratios in ascending order:

14, 15, 18, 18, 18, 19, 20, 21, 21, 22, 22, 22, 23, 23, 24, 25, 29, 31, 43

To find the 10th percentile, we can use the formula P = (10/100) * (N + 1), where N is the total number of values. In this case, N = 19, so P = (10/100) * (19 + 1) = 2.

The 10th percentile is the 2nd value, which is 15.

To find the 75th percentile, we can use the formula P = (75/100) * (N + 1), where N is the total number of values. In this case, N = 19, so P = (75/100) * (19 + 1) = 15.

The 75th percentile is the 15th value, which is 29.