Following is information on the price per share and the dividend for a sample of 30 companies. a. Calculate the regression equation that predicts price per share based on the annual dividend. (Round your answers to 4 decimal places.) b-1. State the null and alternate hypotheses. H0: β = 0 and H1: β ≠ 0 H0: β = 0 and H1: β = 0 H0: β ≠ 0 and H1: β ≠ 0 H0: β ≤ 0 and H1: β > 0 b-2. State the decision rule. Use the 0.05 significance level. (Round your answer to 3 decimal places.) b-3. Compute the value of the test statistic. (Round your answer to 4 decimal places.) b-4. What is your decision regarding H0? b-5. Can we conclude the slope is not equal to zero? Yes No c. Determine the coefficient of determination. (Round your answer to 4 decimal places.)
Correlation
Correlation defines a relationship between two independent variables. It tells the degree to which variables move in relation to each other. When two sets of data are related to each other, there is a correlation between them.
Linear Correlation
A correlation is used to determine the relationships between numerical and categorical variables. In other words, it is an indicator of how things are connected to one another. The correlation analysis is the study of how variables are related.
Regression Analysis
Regression analysis is a statistical method in which it estimates the relationship between a dependent variable and one or more independent variable. In simple terms dependent variable is called as outcome variable and independent variable is called as predictors. Regression analysis is one of the methods to find the trends in data. The independent variable used in Regression analysis is named Predictor variable. It offers data of an associated dependent variable regarding a particular outcome.
Following is information on the price per share and the dividend for a sample of 30 companies.
a. Calculate the regression equation that predicts price per share based on the annual dividend. (Round your answers to 4 decimal places.)
b-1. State the null and alternate hypotheses.
-
H0: β = 0 and H1: β ≠ 0
-
H0: β = 0 and H1: β = 0
-
H0: β ≠ 0 and H1: β ≠ 0
-
H0: β ≤ 0 and H1: β > 0
b-2. State the decision rule. Use the 0.05 significance level. (Round your answer to 3 decimal places.)
b-3. Compute the value of the test statistic. (Round your answer to 4 decimal places.)
b-4. What is your decision regarding H0?
b-5. Can we conclude the slope is not equal to zero?
-
Yes
-
No
c. Determine the coefficient of determination. (Round your answer to 4 decimal places.)
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