A price-earnings ratio or P/E ratio is calculated as a firm's share price compared to the income or profit earned by the firm per share. Generally, a high P/E ratio suggests that investors are expecting higher earnings growth in the future compared to companies with a lower P/E ratio. The following table shows the P/E ratios for a sample of firms in the footwear industry.
Firm P/E Ratio
Brown Show Co., Inc. 26
Crocs, Inc. 13
DSW, Inc 21
Foot Locker, Inc. 16
Nike, Inc 21
Let these ratios represent a random sample drawn from a normally distributed population.
Construct the 90% confidence interval for the mean P/E ratio for the entire footwear industry.
(round intermediate calculations to 4 decimal places. Round "t" value to 3 decimal places and final answers to 1 decimal place)