An economist wants to determine whether the Price/ Earnings (P/E) ratio is the same for firm s in three industries. Independent samples of five firm s in each industry show the following results. The data are also available on the text website, labeled Industry P /E.
a. Specify the competing hypotheses to test whether the median P/E ratios differ by industry.
b. Calculate the value of the test statistic H.
c. At the 5% significance level, what is the critical value?
d. Do P/E ratios differ by industry? Explain