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.
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.
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 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
Transcribed Image Text:(in dollars)
37.57
27.52
41.14
33.28
58.67
15.70
43.58
36.92
19.69
56.44
41.96
29.33
47.96
15.36
29.21
(in dollars)
1.50
0.82
1.12
1.70
2.71
0.92
1.58
1.10
0.65
2.26
1.80
1.41
1.57
0.69
0.77
Current stock price
(in dollars)
Figure 1
3-
2.5-
2-
1.5
1+
0.5-
10
X
X
20
X
xx
30
X
XX
40
xx
50
Earnings per share
(in dollars)
X
60
x
Transcribed Image Text:The value of the sample correlation coefficient r for these data is approximately 0.870.
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.)
(a) What is the value of the slope of the least-squares regression line for these data?
Round your answer to at least three decimal places.
0
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.
0
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