A financial analyst is examining the relationship between stock prices and earnings per share. She chooses...
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A financial analyst is examining the relationship between stock prices and earnings per share. She chooses fifteen publicly traded companies at random and records for each the company's current stock price and the company's earnings per share reported for the past 12 months. Her data are given below, with x denoting the earnings per share from the previous year and y denoting the current stock price (both in dollars). A scatter plot of her data is shown in Figure 1. Earnings per share, x (in dollars) Current stock price, y (in dollars) 43.45 0.86 29.02 1.28 57.66 2.17 19.28 0.73 25t 15.24 0.58 37.44 1.50 29.23 0.90 18.28 0.82 42.92 1.52 034 57.11 2.69 30 30 32.54 1.75 Earnings per share (in dollars) 42.90 1.81 50.44 1.77 Figure 1 37.85 1.06 25.25 1.17 The value of the sample correlation coefficient r for these data is approximately 0.832. niers as snecified below. (If necessary, consult a Cưrrent stock price (In dollars) www-awn.aleks.com/alekscgi/x/Isl.exe/1o_u-lgNslkr7j8P3jH-IBGBİH_OB3uhhqwxlXoS5SIQhuX6YjFjUgDFVjsLWu6J4Cmjg-ANJIPMWFZSF81--Px_Jnt23sp3mlfQKpl5vqYrFiS_xFq?1oBw7QYjlbavbSPXtx-YCjsh_7mMmrq#item * O CORRELATION AND SIMPLE LINEAR REGRESSION Relating the sample correlation coefficient and the parameters ... Emmanuel V 42.92 1.52 0.5 57.11 2.69 10 20 30 40 50 60 32.54 1.75 Earnings per share (in dollars) 42.90 1.81 50.44 1.77 Figure 1 37.85 1.06 25.25 1.17 Aa The value of the sample correlation coefficient r for these data is approximately 0.832. Answer the following. Carry your intermediate computations to at least four decimal places, and round your answers as specified below. (If necessary, consult a list of formulas.) (a) What is the value of the slope of the least-squares regression line for these data? Round your answer to at least three decimal places. (b) What is the value of the y-intercept of the least-squares regression line for these data? Round your answer to at least three decimal places. Explanation Check O 2020 McGraw-Hill Education. All Rights Reserved. Terms of Use Privacy Accessibility 11:08 AM ヘg回 后) 12/2/2020 o 耳( Type here to search A financial analyst is examining the relationship between stock prices and earnings per share. She chooses fifteen publicly traded companies at random and records for each the company's current stock price and the company's earnings per share reported for the past 12 months. Her data are given below, with x denoting the earnings per share from the previous year and y denoting the current stock price (both in dollars). A scatter plot of her data is shown in Figure 1. Earnings per share, x (in dollars) Current stock price, y (in dollars) 43.45 0.86 29.02 1.28 57.66 2.17 19.28 0.73 25t 15.24 0.58 37.44 1.50 29.23 0.90 18.28 0.82 42.92 1.52 034 57.11 2.69 30 30 32.54 1.75 Earnings per share (in dollars) 42.90 1.81 50.44 1.77 Figure 1 37.85 1.06 25.25 1.17 The value of the sample correlation coefficient r for these data is approximately 0.832. niers as snecified below. (If necessary, consult a Cưrrent stock price (In dollars) www-awn.aleks.com/alekscgi/x/Isl.exe/1o_u-lgNslkr7j8P3jH-IBGBİH_OB3uhhqwxlXoS5SIQhuX6YjFjUgDFVjsLWu6J4Cmjg-ANJIPMWFZSF81--Px_Jnt23sp3mlfQKpl5vqYrFiS_xFq?1oBw7QYjlbavbSPXtx-YCjsh_7mMmrq#item * O CORRELATION AND SIMPLE LINEAR REGRESSION Relating the sample correlation coefficient and the parameters ... Emmanuel V 42.92 1.52 0.5 57.11 2.69 10 20 30 40 50 60 32.54 1.75 Earnings per share (in dollars) 42.90 1.81 50.44 1.77 Figure 1 37.85 1.06 25.25 1.17 Aa The value of the sample correlation coefficient r for these data is approximately 0.832. Answer the following. Carry your intermediate computations to at least four decimal places, and round your answers as specified below. (If necessary, consult a list of formulas.) (a) What is the value of the slope of the least-squares regression line for these data? Round your answer to at least three decimal places. (b) What is the value of the y-intercept of the least-squares regression line for these data? Round your answer to at least three decimal places. Explanation Check O 2020 McGraw-Hill Education. All Rights Reserved. Terms of Use Privacy Accessibility 11:08 AM ヘg回 后) 12/2/2020 o 耳( Type here to search
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Related Book For
Business Statistics
ISBN: 978-0321925831
3rd edition
Authors: Norean Sharpe, Richard Veaux, Paul Velleman
Posted Date:
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