Following is information on the price per share and the dividend for a sample of 30 companies.

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Following is information on the price per share and the dividend for a sample of 30 companies.

Company Price per Share Dividend 1 $20.00 $ 3.14 22.01 3.36 29 77.91 17.65 30 80.00 17.36 2.

a. Calculate the regression equation that predicts price per share based on the annual dividend.

b. Test the significance of the slope.

c. Determine the coefficient of determination. Interpret its value.

d. Determine the correlation coefficient. Can you conclude that it is greater than 0 using the .05 significance level?

e. If the dividend is $10, what is the predicted price per share?

f. What is the 95% prediction interval of price per share if the dividend is $10?

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Related Book For  book-img-for-question

Statistical Techniques In Business And Economics

ISBN: 9781260239478

18th Edition

Authors: Douglas Lind, William Marchal, Samuel Wathen

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