A financial analyst 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). 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 sixteen stocks. (These products, written in the column labelled "xy", may aid in calculations.) Earnings per share, x (in dollars) 42.37 20.81 36.90 30.84 27.08 52.41 17.05 37.94 48.00 29.31 58.83 32.83 15.58 42.46 40.20 57.48 Send data to calculator 0 Current stock price, y (in dollars) 1.04 0.59 1.16 1.41 0.94 2.74 0.79 1.51 1.83 0.83 2.77 1.89 0.52 1.44 1.84 2.24 xy 44.0648 12.2779 42.804 43.4844 25.4552 143.6034 13.4695 57.2894 87.84 24.3273 162.9591 62.0487 8.1016 61.1424 73.968 128.7552 Current stock price (in dollars) Figure 1 3- 2.5 1- 0.5 0 10 20 30 40 50 Earnings per share (in dollars) 60 What is the sample correlation coefficient for these data? Carry your intermediate computations to at least four decimal places and round your answer to at least three decimal places. (If necessary, consult a list of formulas.)
A financial analyst 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). 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 sixteen stocks. (These products, written in the column labelled "xy", may aid in calculations.) Earnings per share, x (in dollars) 42.37 20.81 36.90 30.84 27.08 52.41 17.05 37.94 48.00 29.31 58.83 32.83 15.58 42.46 40.20 57.48 Send data to calculator 0 Current stock price, y (in dollars) 1.04 0.59 1.16 1.41 0.94 2.74 0.79 1.51 1.83 0.83 2.77 1.89 0.52 1.44 1.84 2.24 xy 44.0648 12.2779 42.804 43.4844 25.4552 143.6034 13.4695 57.2894 87.84 24.3273 162.9591 62.0487 8.1016 61.1424 73.968 128.7552 Current stock price (in dollars) Figure 1 3- 2.5 1- 0.5 0 10 20 30 40 50 Earnings per share (in dollars) 60 What is the sample correlation coefficient for these data? Carry your intermediate computations to at least four decimal places and round your answer to at least three decimal places. (If necessary, consult a list of formulas.)
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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Question
Problem 6
Transcribed Image Text:A financial analyst 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). 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 sixteen stocks. (These products,
written in the column labelled "xy", may aid in calculations.)
Earnings per
share, x
(in dollars)
42.37
20.81
36.90
30.84
27.08
52.41
17.05
37.94
48.00
29.31
58.83
32.83
15.58
42.46
40.20
57.48
Send data to calculator
0
Current stock
price, y
(in dollars)
1.04
0.59
1.16
1.41
0.94
2.74
0.79
1.51
1.83
0.83
2.77
1.89
0.52
1.44
1.84
2.24
44.0648
12.2779
42.804
43.4844
25.4552
143.6034
13.4695
57.2894
87.84
24.3273
162.9591
62.0487
8.1016
61.1424
73.968
128.7552
Current stock price
(in dollars)
Figure 1
3
2.5
1.5
0.5-
0
10
X
20
X
X
30
X
X
X
40
X
X
X
50
Earnings per share
(in dollars)
X
X
60
X
What is the sample correlation coefficient for these data? Carry your intermediate computations to at least four decimal
places and round your answer to at least three decimal places. (If necessary, consult a list of formulas.)
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