A financial analyst is examining the relationship between stock prices and earnings per share. She chodses 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). A scatter plot of her data is shown in Figure 1. Also given is the product of the earnings per share and the current stock price for each of the fifteen stocks. (These products, written in the column labelled "xy ", may aid in calculations.) Earnings per Current stock price, y (in dollars) share, x ху (in dollars) 56.80 2.80 159.04 40.82 1.18 48.1676 3+ 36.83 1.42 52.2986 32.91 1.58 51.9978 25+ 41.13 1.89 77.7357 25.96 0.88 22.8448 1.5 40.59 1.64 66.5676 49.25 1.61 79.2925 14.73 0.41 6.0393 0.5 18.33 0.61 11.1813 10 40 22.49 0.51 11.4699 Earnings per share (in dollars) 39.04 1.10 42.944 29.81 1.29 38.4549 Figure 1 30.68 0.95 29.146 57.07 2.14 122.1298 Send data to calculator Send data to Excel What is the siope of the least squares regression line for these data? CarrY your intermediate computations to at least four decimal places and round vour answer to at least three decimal places. (If necessary, consult a list of formulas.) urrent stock price (SJejop u)
A financial analyst is examining the relationship between stock prices and earnings per share. She chodses 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). A scatter plot of her data is shown in Figure 1. Also given is the product of the earnings per share and the current stock price for each of the fifteen stocks. (These products, written in the column labelled "xy ", may aid in calculations.) Earnings per Current stock price, y (in dollars) share, x ху (in dollars) 56.80 2.80 159.04 40.82 1.18 48.1676 3+ 36.83 1.42 52.2986 32.91 1.58 51.9978 25+ 41.13 1.89 77.7357 25.96 0.88 22.8448 1.5 40.59 1.64 66.5676 49.25 1.61 79.2925 14.73 0.41 6.0393 0.5 18.33 0.61 11.1813 10 40 22.49 0.51 11.4699 Earnings per share (in dollars) 39.04 1.10 42.944 29.81 1.29 38.4549 Figure 1 30.68 0.95 29.146 57.07 2.14 122.1298 Send data to calculator Send data to Excel What is the siope of the least squares regression line for these data? CarrY your intermediate computations to at least four decimal places and round vour answer to at least three decimal places. (If necessary, consult a list of formulas.) urrent stock price (SJejop u)
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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Transcribed Image Text:### Analyzing the Relationship between Stock Prices and Earnings per Share
A financial analyst is examining the relationship between stock prices and earnings per share. She selects fifteen publicly traded companies at random, recording each company's current stock price and earnings per share reported for the past 12 months. For analysis, \( x \) represents the earnings per share from the previous year, and \( y \) indicates the current stock price (both in dollars).
Additionally, the product of earnings per share and the current stock price for each of the fifteen stocks is provided in the "xy" column.
#### Data Table
| Earnings per Share, \( x \) (in dollars) | Current Stock Price, \( y \) (in dollars) | \( xy \) |
|--------------------------------------|---------------------------------|-------|
| 56.80 | 2.80 | 159.04 |
| 40.82 | 1.89 | 77.1498|
| 36.83 | 1.42 | 52.2566|
| 32.91 | 1.58 | 51.9978|
| 32.91 | 2.39 | 77.7357|
| 25.96 | 0.88 | 22.8448|
| 40.59 | 1.62 | 65.7558|
| 100.79 | 1.61 | 162.2719|
| 14.73 | 0.41 | 6.0393 |
| 18.83 | 0.51 | 9.6033 |
| 22.93 | 0.51 | 11.6949|
| 7.45 | 0.44 | 2.7494 |
| 22.09 | 1.29 | 28.5361|
| 29.81 | 1.29 | 38.4949|
| 50.68 | 1.94 | 98.3196|
| 57.07 | 2.14 | 122.1298|
#### Scatter Plot
- **Figure 1**: Shows a scatter plot with the horizontal axis representing earnings per share (in dollars) and the vertical axis representing the current stock price
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