A financial analyst is examining the relationship between stock prices and earnings per share. She chooses 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 -0.18+0.044x. This line, along with a scatter plot of her data, is shown below. Earnings per Current stock share, x (in dollars) 35.99 32.89 41.87 56.94 58.58 28.41 28.15 38.45 50.10 51.95 30.64 41.65 16.11 21.02 42.36 16.78 Send data to calculator v Send data to Excel price, y (in dollars) 1.43 1.72 1.14 2.72 2.20 0.78 1.02 1.22 1.40 2.62 1.49 1.77 0.66 0.62 1.55 0.53 Current stock price, y in dollars) Earnings per share, x (in dollars) Based on the sample data and the regression line, complete the following. (a) For these data, current stock prices that are less than the mean of the current stock prices tend to be paired with values for earnings per share that are (Choose one) 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? (Do not round your answer.) 0 (c) From the regression equation, what is the predicted current stock price (in dollars) when the earnings per share is 58.58 dollars? (Round your answer to at least two decimal places.) 0 (d) What was the observed current stock price (in dollars) when the earnings per share was 58.58 dollars? 0 X 5
A financial analyst is examining the relationship between stock prices and earnings per share. She chooses 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 -0.18+0.044x. This line, along with a scatter plot of her data, is shown below. Earnings per Current stock share, x (in dollars) 35.99 32.89 41.87 56.94 58.58 28.41 28.15 38.45 50.10 51.95 30.64 41.65 16.11 21.02 42.36 16.78 Send data to calculator v Send data to Excel price, y (in dollars) 1.43 1.72 1.14 2.72 2.20 0.78 1.02 1.22 1.40 2.62 1.49 1.77 0.66 0.62 1.55 0.53 Current stock price, y in dollars) Earnings per share, x (in dollars) Based on the sample data and the regression line, complete the following. (a) For these data, current stock prices that are less than the mean of the current stock prices tend to be paired with values for earnings per share that are (Choose one) 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? (Do not round your answer.) 0 (c) From the regression equation, what is the predicted current stock price (in dollars) when the earnings per share is 58.58 dollars? (Round your answer to at least two decimal places.) 0 (d) What was the observed current stock price (in dollars) when the earnings per share was 58.58 dollars? 0 X 5
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
Related questions
Question
Transcribed Image Text:A financial analyst is examining the relationship between stock prices
and earnings per share. She chooses 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 -0.18+0.044.x. This line, along with a scatter plot of her data, is shown
below.
Earnings per Current stock
share, x
price, y
(in dollars) (in dollars)
35.99
1.43
32.89
1.72
41.87
1.14
56.94
2.72
58.58
2.20
0.78
1.02
1.22
1.40
28.41
28.15
38.45
50.10
51.95
30.64
41.65
16.11
21.02
42.36
16.78
Send data to calculator ✓ Send data to Excel
2.62
1.49
1.77
0.66
0.62
1.55
0.53
Current stock price, y
(in dollars)
05
Earnings per share, x
(in dollars)
Based on the sample data and the regression line, complete the
following.
(a) For these data, current stock prices that are less
than the mean of the current stock prices tend to
be paired with values for earnings per share that
are (Choose one) 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? (Do not round your answer.)
0
(c) From the regression equation, what is the
predicted current stock price (in dollars) when the
earnings per share is 58.58 dollars? (Round your
answer to at least two decimal places.)
(d) What was the observed current stock price (in
dollars) when the earnings per share was 58.58
dollars?
X
S
?
G
FED
Transcribed Image Text:Earnings per Current stock
share, x
(in dollars)
35.99
32.89
41.87
56.94
58.58
28.41
28.15
38.45
50.10
51.95
30.64
41.65
16.11
21.02
42.36
16.78
price, y
(in dollars)
1.43
1.72
1.14
2.72
2.20
0.78
1.02
1.22
1.40
2.62
1.49
1.77
0.66
0.62
1.55
0.53
Send data to calculator
Send data to Excel
Current stock price, y
(in dollars)
greater than
less than
Earnings per share, x
(in dollars)
Based on the sample data and the regression line, complete the
following.
(a) For these data, current stock prices that are less
than the mean of the current stock prices tend to
be paired with values for earnings per share that
are (Choose one) the mean of the values for
earr
are.
(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? (Do not round your answer.)
0
(c) From the regression equation, what is the
predicted current stock price (in dollars) when the
earnings per share is 58.58 dollars? (Round your
answer to at least two decimal places.)
0
(d) What was the observed current stock price (in
dollars) when the earnings per share was 58.58
dollars?
X
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