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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 previous year. 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) 40.95 26.87 22.43 38.47 42.01 29.78 58.65 34.81 58.99 19.67 12.97 41.09 49.40 31.48 36.16 Send data to calculator Current stock price, y (in dollars) 1.15 0.96 0.54 1.53 1.58 1.40 2.79 1.82 2.14 0.91 0.57 1.74 1.57 0.79 1.25 Send data to Excel Current stock price (in dollars) 3- 2.5 Figure 1 2- 1.5- ti 0.5 0 20 (b) What is the value of the sample correlation coefficient for these data? Round your answer to at least three decimal places. (a) 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. X Earnings per share (in dollars) 50 The least-squares regression line for these data has a slope of approximately 0.040. 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.) S 60 X

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 previous year. 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) 40.95 26.87 22.43 38.47 42.01 29.78 58.65 34.81 58.99 19.67 12.97 41.09 49.40 31.48 36.16 Send data to calculator Current stock price, y (in dollars) 1.15 0.96 0.54 1.53 1.58 1.40 2.79 1.82 2.14 0.91 0.57 1.74 1.57 0.79 1.25 Send data to Excel Current stock price (in dollars) 3- 2.5 Figure 1 2- 1.5- ti 0.5 0 20 (b) What is the value of the sample correlation coefficient for these data? Round your answer to at least three decimal places. (a) 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. X Earnings per share (in dollars) 50 The least-squares regression line for these data has a slope of approximately 0.040. 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.) S 60 X

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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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 company’s current stock price and the company’s earnings per share reported for the previous year. 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. **Data Table:** | Earnings per share, \( x \) (in dollars) | Current stock price, \( y \) (in dollars) | |------------------------------------------|--------------------------------------------| | 40.95 | 1.15 | | 26.87 | 0.96 | | 22.43 | 0.54 | | 38.47 | 1.53 | | 42.01 | 1.58 | | 29.78 | 1.40 | | 58.65 | 2.79 | | 34.81 | 1.82 | | 58.99 | 2.14 | | 19.67 | 0.91 | | 12.97 | 0.57 | | 41.09 | 1.74 | | 49.40 | 1.57 | | 31.48 | 0.79 | | 36.16 | 1.25 | **Scatter Plot Description:** The scatter plot (Figure 1) shows the current stock price (\( y \)) in dollars on the vertical axis against earnings per share (\( x \)) in dollars on the horizontal axis. The plot features data points that show a general trend indicating a positive linear relationship between earnings per share and current stock price. **Analysis:** The least-squares regression line for these data has a slope of approximately 0.040. **Questions:** (a) 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. (b) What is the value of the sample correlation coefficient for these data? Round your answer to at least three decimal places.
Transcribed Image Text: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 company’s current stock price and the company’s earnings per share reported for the previous year. 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. **Data Table:** | Earnings per share, \( x \) (in dollars) | Current stock price, \( y \) (in dollars) | |------------------------------------------|--------------------------------------------| | 40.95 | 1.15 | | 26.87 | 0.96 | | 22.43 | 0.54 | | 38.47 | 1.53 | | 42.01 | 1.58 | | 29.78 | 1.40 | | 58.65 | 2.79 | | 34.81 | 1.82 | | 58.99 | 2.14 | | 19.67 | 0.91 | | 12.97 | 0.57 | | 41.09 | 1.74 | | 49.40 | 1.57 | | 31.48 | 0.79 | | 36.16 | 1.25 | **Scatter Plot Description:** The scatter plot (Figure 1) shows the current stock price (\( y \)) in dollars on the vertical axis against earnings per share (\( x \)) in dollars on the horizontal axis. The plot features data points that show a general trend indicating a positive linear relationship between earnings per share and current stock price. **Analysis:** The least-squares regression line for these data has a slope of approximately 0.040. **Questions:** (a) 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. (b) What is the value of the sample correlation coefficient for these data? Round your answer to at least three decimal places.
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