A financial analyst is examining the relationship between

Last updated: 8/17/2023

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 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 y 0 225 0 043x This line along with a scatter plot of her data is shown below Check Earnings per share x in dollars 15 23 27 19 17 38 22 17 39 39 43 38 59 64 40 79 57 54 37 77 33 93 41 22 Current stock price y in dollars 37 77 33 93 41 22 50 28 30 33 29 04 Question 5 of 9 1 point Question Attempt 2 of 3 43 38 59 64 40 79 57 54 0 40 0 99 0 58 0 74 1 04 1 56 2 12 1 13 2 89 1 55 1 70 1 73 Send data to calculator V 1 56 2 12 1 13 2 89 1 55 1 70 1 73 1 70 1 37 0 74 Send data to Excel Current stock price in dollars 0 5 Current stock in dollars Based on the analyst s data and regression line complete the following 10 20 16 x x X x Earnings per share in dollars x a For these data current stock prices that are greater 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 Save For Later X Submit As Javi