### Understanding Regression and Stock Prices#### Problem Set:(a) For these data, values for earnings per share that are greater than the mean of the values for earnings per share tend to be paired with current stock prices that are - [Dropdown Menu] less than the mean of the current stock prices.(b) According to the regression equation, for an increase of one dollar in earnings per share, there is a corresponding - [Dropdown Menu] increase of 0.043 dollars in current stock price.(c) What was the observed current stock price (in dollars) when the earnings per share was 57.70 dollars?- [Input Field] (d) From the regression equation, what is the predicted current stock price (in dollars) when the earnings per share is 57.70 dollars? (Round your answer to at least two decimal places.)- [Input Field] [Continue Button]---These questions are designed to help you understand how changes in earnings per share can influence stock prices according to a regression analysis. The dropdown menus and input fields should be filled out based on the given data and the regression equation provided in your textbook or associated educational materials. Please ensure your answers for part (d) are rounded correctly to two decimal places.---© 2021 McGraw-Hill Education. All Rights Reserved. ### Analyzing the Relationship Between Stock Prices and EarningsA financial analyst is examining the relationship between stock prices and earnings per share (EPS) for different companies. Below is the data collected over the past 12 months, with the variable $ x $ representing each company's earnings per share and the variable $ y $ representing the company's current stock price.The table presents the data points for earnings per share $ x $ (in dollars) and the corresponding current stock price $ y $ (in dollars):| Earnings per share, $ x $ (in dollars) | Current stock price, $ y $ (in dollars) ||------------------------------------------|------------------------------------------|| 36.55 | 1.64 || 14.18 | 0.57 || 41.79 | 1.37 || 39.16 | 1.10 || 57.70 | 2.71 || 26.95 | 0.90 || 32.65 | 1.70 || 41.94 | 1.17 || 52.79 | 2.56 || 42.72 | 2.01 || 16.89 | 0.76 || 22.46 | 0.58 || 58.88 | 2.19 || 30.13 | 1.48 || 50.08 | 1.73 || 28.92 | 0.81 |### Scatter Plot and Least-Squares Regression LineTo understand the relationship, the analyst has created a scatter plot with a least-squares regression line. The scatter plot displays each pair of (x, y) values as points in a two-dimensional space:- The x-axis represents earnings per share (in dollars).- The y-axis represents the current stock price (in dollars).The least-squares regression line, represented by the equation $ y = -0.147 + 0.043x $, illustrates the best-fit line through the data points. This line minimizes the sum of the squares of the vertical deviations (residuals) of each point from the line.### Scatter Plot AnalysisThe plot contains the following features:- Individual data points are marked

given data Regression equation ŷ = -0.147 + 0.043x From the equation, if x increases, y will also…

(a) For these data, values for earnings per share that are greater than the mean of the values for earnings per share tend to be paired with current stock prices that are less than the mean of the current stock prices. (b) According to the regression equation, for an increase of one dollar in earnings per share, there is a corresponding increase of 0.043 dollars in current stock price. (c) What was the observed current stock price (in dollars) when the earnings per share was 57.70 dollars? (d) From the regression equation, what is the predicted current stock price (in dollars) when the earnings per share is 57.70 dollars? (Round your answer to at least two decimal places.)

(a) For these data, values for earnings per share that are greater than the mean of the values for earnings per share tend to be paired with current stock prices that are less than the mean of the current stock prices. (b) According to the regression equation, for an increase of one dollar in earnings per share, there is a corresponding increase of 0.043 dollars in current stock price. (c) What was the observed current stock price (in dollars) when the earnings per share was 57.70 dollars? (d) From the regression equation, what is the predicted current stock price (in dollars) when the earnings per share is 57.70 dollars? (Round your answer to at least two decimal places.)

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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