Using a sample of 45 data points, you calculated a covariance (s_xy) of -58, s_x= 11, s_y= 20. Find the coefficient of correlation and the coefficient of determination.

Question 5 options:

a)

Coefficient of correlation = + 0.2636 while the coefficient of determination = + 0.0695.

b)

Coefficient of correlation = + 0.2636 while the coefficient of determination = - 0.0695.

c)

Coefficient of correlation = - 0.2636 while the coefficient of determination = + 0.0695.

d)

Coefficient of correlation = - 0.2636 while the coefficient of determination = - 0.0695.

Using a sample of 45 data points, you calculated a covariance (s_xy) of -58, s_x= 11, s_y= 20. Choose the best conclusion from the options below.

Question 6 options:

a)

nearly 7 percent of the variation in "y" is being accounted for by its relationship with "x"

b)

about 26 percent of the variation in "x" is being accounted for by its relationship with "y"

c)

nearly 7 percent of the variation in "x" is being accounted for by its relationship with "y"

d)

about 26 percent of the variation in "y" is being accounted for by its relationship with "x"

For the estimated regression equation below, what is the correct interpretation of the standard error of the estimate?

Predicted Earnings per Share = 1.25 + 125.78 (Assets), Se = 4.3

Note: earnings per share is measured in dollars per share and assets are measured in millions of dollars.

Question 7 options:

a)

Our predictions will be off by an average of 4.3%

b)

4.3 percent of the variation in earnings per share is being accounted for by assets

c)

Our predictions will be off by an average of 4.3 dollars per share

d)

Our predictions will be off by an average of 43 million dollars per share