Question

The following are the P/E ratios (price of stock divided by projected earnings per share) for 15banks. 18, 22, 23, 29, 22, 18, 38, 19, 23, 20, 22, 14, 18, 21, 23 Find 25th and 80th percentiles for these ratios.

Answer 1

Solution :

Step 1: Put the numbers in order least to greatest

14, 18, 18, 18, 19, 20, 21, 22, 22, 22, 23, 23, 23, 29, 38

Step 2: Count the numbers = 15

Step 3: 25% of 15 = 0.25 x 15 = 3.75

Step4: Find the 5th number in the list counting from the least , which is 19, this is the 25th% number.

Step 5: 80% of 15 = 0.80 x 15 = 12

Step 6: Find the 13th number in the list counting from the least, which is 23, this is the 80th%

number.

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