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ancial analyst is examining the relationship between stock prices and earnings per share. She chooses fifteen publicly traded companies at random and ords 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 oting 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. Earnings per share, x (in dollars) Current stock price, y (in dollars) 41.07 1.36 37.16 1.44 32.51 0.83 21.34 0.69 28.57 1.53 50.97 1.72 32.12 1.58 41.71 1.99 39.64 1.03 0. 14.06 0.54 58.32 2.70 2.37 Earnings per share (in dollars) 56.90 38.41 1.13 Figure 1 28.89 0.96 0.67 16.27 Send data to calculator Send data to Excel The value of the sample correlation coefficient r for these data is approximately 0.871. 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. (b) What is the value of the y-intercept of the least-squares regression line for these data? Current stock price (in dollars)

ancial analyst is examining the relationship between stock prices and earnings per share. She chooses fifteen publicly traded companies at random and ords 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 oting 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. Earnings per share, x (in dollars) Current stock price, y (in dollars) 41.07 1.36 37.16 1.44 32.51 0.83 21.34 0.69 28.57 1.53 50.97 1.72 32.12 1.58 41.71 1.99 39.64 1.03 0. 14.06 0.54 58.32 2.70 2.37 Earnings per share (in dollars) 56.90 38.41 1.13 Figure 1 28.89 0.96 0.67 16.27 Send data to calculator Send data to Excel The value of the sample correlation coefficient r for these data is approximately 0.871. 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. (b) What is the value of the y-intercept of the least-squares regression line for these data? Current stock price (in dollars)

MATLAB: An Introduction with Applications
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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### Relationship between Stock Prices and Earnings per Share A financial analyst examines the relationship between stock prices and earnings per share. She selects fifteen publicly traded companies at random and records each company's current stock price and 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. #### Data Table | Earnings per share, \( x \) (in dollars) | Current stock price, \( y \) (in dollars) | |-----------------------------------------|------------------------------------------| | 41.07 | 1.36 | | 37.16 | 1.44 | | 32.51 | 0.83 | | 21.34 | 0.69 | | 28.57 | 0.92 | | 50.97 | 1.72 | | 32.12 | 1.58 | | 41.71 | 1.00 | | 39.64 | 1.03 | | 14.06 | 0.54 | | 58.32 | 2.70 | | 56.90 | 2.36 | | 38.41 | 1.13 | | 28.89 | 0.96 | | 16.27 | 0.67 | #### Scatter Plot The scatter plot demonstrates the relationship between earnings per share and current stock price. Each point represents a company, with the x-axis indicating earnings per share (in dollars) and the y-axis indicating the current stock price (in dollars). #### Statistical Analysis - **Sample Correlation Coefficient \( r \):** The value for these data is approximately 0.871. ##### Questions (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. (b) **What is the value of the y-intercept of the least-squares regression line for these data?** For further calculations, refer to a list of formulas if necessary. Use the options to send data to calculator or Excel for detailed
Transcribed Image Text:### Relationship between Stock Prices and Earnings per Share A financial analyst examines the relationship between stock prices and earnings per share. She selects fifteen publicly traded companies at random and records each company's current stock price and 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. #### Data Table | Earnings per share, \( x \) (in dollars) | Current stock price, \( y \) (in dollars) | |-----------------------------------------|------------------------------------------| | 41.07 | 1.36 | | 37.16 | 1.44 | | 32.51 | 0.83 | | 21.34 | 0.69 | | 28.57 | 0.92 | | 50.97 | 1.72 | | 32.12 | 1.58 | | 41.71 | 1.00 | | 39.64 | 1.03 | | 14.06 | 0.54 | | 58.32 | 2.70 | | 56.90 | 2.36 | | 38.41 | 1.13 | | 28.89 | 0.96 | | 16.27 | 0.67 | #### Scatter Plot The scatter plot demonstrates the relationship between earnings per share and current stock price. Each point represents a company, with the x-axis indicating earnings per share (in dollars) and the y-axis indicating the current stock price (in dollars). #### Statistical Analysis - **Sample Correlation Coefficient \( r \):** The value for these data is approximately 0.871. ##### Questions (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. (b) **What is the value of the y-intercept of the least-squares regression line for these data?** For further calculations, refer to a list of formulas if necessary. Use the options to send data to calculator or Excel for detailed
**Transcription for Educational Website:** The value of the sample correlation coefficient \( r \) for these data is approximately 0.871. **Answer the following. Carry your intermediate computations to at least four decimal places, and round your answers as specified. (You may need to 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. [Answer box] **(b)** 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. [Answer box] *Note: Figure 1 is mentioned but not displayed here, indicating some data or graph associated with these computations.* **Buttons:** - Explanation - Check --- This transcription outlines the task of calculating the slope and y-intercept of a least-squares regression line, emphasizing the importance of precision in mathematical computations.
Transcribed Image Text:**Transcription for Educational Website:** The value of the sample correlation coefficient \( r \) for these data is approximately 0.871. **Answer the following. Carry your intermediate computations to at least four decimal places, and round your answers as specified. (You may need to 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. [Answer box] **(b)** 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. [Answer box] *Note: Figure 1 is mentioned but not displayed here, indicating some data or graph associated with these computations.* **Buttons:** - Explanation - Check --- This transcription outlines the task of calculating the slope and y-intercept of a least-squares regression line, emphasizing the importance of precision in mathematical computations.
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Given information:

n= 15 observation

The value of the sample correlation coefficient r= 0.871

∑x=537.94x= ∑xn=537.9415=35.8627∑y=20.54y= ∑yn=20.5415=1.3693∑(x-x)2= 2456.066∑(y-y)2= 5.624693sx= ∑(x-x)2n-1sx= 2456.06614sx=175.433286sx= 13.2451sy= ∑(y-y)2n-1sy=5.62469314sy=0.401764sy=0.6338

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