40.55 1.68 (in dollars) 17.64 0.59 41.69 1.62 Send data to calculator Send data to Excel Based on the analyst's data and regression line, answer the following. (a) what was the observed current stock price (in dollars) when the earnings per share was 52.08 dollars? (b) From the regression equation, what is the predicted current stock price (in dollars) when the earnings per share is 52.08 dollars? Round your answer to two or more decimal places.

MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
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Chapter1: Starting With Matlab
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A finanMalyst is examining the relationship between stock prices and earnings per share. She chooses sixteen 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, she computes the least-
squares regression line to be y =-0.147+0.044x. This line, along with a scatter plot of her data, is shown below.
Earnings per share, x
(in dollars)
Current stock price, y
(in dollars)
42.00
1.25
52.08
2.69
58.85
2.71
3+
28.46
0.83
16.37
0.60
2.5-
48.71
1.53
2-
33.04
1.82
15-
58.54
2.33
30.03
1.39
38.40
1.38
0.54-
25.38
1.07
19.91
M 0.79
20
30
40
50
Current stock price
(in dollars)
Transcribed Image Text:A finanMalyst is examining the relationship between stock prices and earnings per share. She chooses sixteen 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, she computes the least- squares regression line to be y =-0.147+0.044x. This line, along with a scatter plot of her data, is shown below. Earnings per share, x (in dollars) Current stock price, y (in dollars) 42.00 1.25 52.08 2.69 58.85 2.71 3+ 28.46 0.83 16.37 0.60 2.5- 48.71 1.53 2- 33.04 1.82 15- 58.54 2.33 30.03 1.39 38.40 1.38 0.54- 25.38 1.07 19.91 M 0.79 20 30 40 50 Current stock price (in dollars)
38.77
1.45
Earnings per share
(in dollars)
40.55
1.68
17.64
0.59
41.69
1.62
Send data to calculator
Send data to Excel
Based on the analyst's data and regression line, answer the following.
(a) what was the observed current stock price (in dollars) when the earnings per share was 52.08 dollars?
(b) From the regression equation, what is the predicted current stock price (in dollars) when the earnings per share is 52.08
dollars? Round your answer to two or more decimal places.
Transcribed Image Text:38.77 1.45 Earnings per share (in dollars) 40.55 1.68 17.64 0.59 41.69 1.62 Send data to calculator Send data to Excel Based on the analyst's data and regression line, answer the following. (a) what was the observed current stock price (in dollars) when the earnings per share was 52.08 dollars? (b) From the regression equation, what is the predicted current stock price (in dollars) when the earnings per share is 52.08 dollars? Round your answer to two or more decimal places.
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