Answer Happy

III COWYLATON AND SIMPLE LEAR REGION Interpreting the slope of the least squares regression line A financial analysis 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 denoting the earnings per share from the previous year, and y denoting the current stock price (both in dollars). Based on these data, the computes the last autres regression line to be 9 -0.058 -0.040x This tine, along with a scatter blot of her data, is shown below. Earnings per share, (in dollars) 43.51 58.88 23.02 26.94 29.85 17.10 38 44 Current stock price, y (in dollars) 1.73 2.21 0.68 1.00 1.34 0.92 1.22 0.80 0.98 1.79 1.53 Current stock price in dollars) 31.57 41.51 41.46 49.73 58.42 14.55 37.58 2.92 0.53 Earnings per share (in dollars) 1.56

M 41.46 49.73 58.42 14.55 37.58 33.03 1.79 1.53 2.92 0.53 1.56 Earnings per share (in dollars) 1.79 Send data to calculator Send data to Excel Bm Based on the analyst's data and regression line, complete the following (a) For these data, values for earnings per share that are greater than the mean of the values for earnings per share tend to be paired with current stock prices that are (Choose one) the mean of the current stock prices. (b) According to the regression equation, for an increase of one dollar in earnings per share, there is a corresponding increase of how many dollars in current stock price? 0