A Financial Analyst Is Examining The Relationship Between Stock Prices And Earrings Per Share She Chooses Fifteen Publi 1 (29.02 KiB) Viewed 70 times
A Financial Analyst Is Examining The Relationship Between Stock Prices And Earrings Per Share She Chooses Fifteen Publi 2 (27.55 KiB) Viewed 70 times
A financial analyst is examining the relationship between stock prices and earrings 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). Based on these data, the computes the last squares regression line to be 9 = -0.147 +0,044%. This linie, along with a scatter plot of her data, is shown below. Current stock price, (in dollars) 296 103 2.17 Earnings per share, (in dollars) 57.69 29.24 56.85 2763 21.46 48.85 32 80 40.38 1631 17:26 3137 3799 43.40 41.67 36.15 1.07 0.77 165 185 192 0.53 0.68 1:19 141 162 119 12:53 Current stock price in dollars) Earnings per share in dollars)
in dollars) 1.19 41.67 36.15 1.53 Send data to calculator Send data to Excel Based on the analyst's data and regression line, complete the following. (a) For these data, current stock prices that are greater than the mean of the current stock prices tend to be paired with values for earnings per share that are (Choose one) v the mean of the values for earnings per share. (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?
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!