Below is information on the price per share and the dividend for a sample of 30

Question

Below is information on the price per share and the dividend for a sample of 30 companies. (Round your coefficient of determination to 4 decimal places and other answers to 2 decimal places.)

Company Price per
Share Dividend Company Price per
Share Dividend
1 $ 20.00 $ 3.99 16 $ 57.06 $ 5.28
2 22.01 5.91 17 57.40 12.60
3 31.39 0.46 18 58.30 13.83
4 33.57 4.59 19 59.51 7.97
5 35.86 0.77 20 60.60 4.94
6 36.12 9.31 21 64.01 16.50
7 36.16 7.62 22 64.66 16.95
8 37.99 -0.47 23 64.74 12.91
9 38.85 6.33 24 64.95 11.39
10 39.65 7.96 25 66.43 21.15
11 43.44 12.35 26 68.18 11.75
12 49.08 9.61 27 69.56 24.42
13 53.73 11.11 28 74.90 11.54
14 54.41 21.78 29 77.91 17.65
15 55.10 10.22 30 80.00 18.21

(a) Calculate the regression equation using selling price based on the annual dividend.
Y' = + X
Interpret the slope value.


(b) The coefficient of determination is
This means that % of the variation in price is explained by the dividend.

(c) The coefficient of correlation is .
Can you conclude that it is greater than 0 using the .05 significance level?
The test statistic is .
Decision:

Explanation / Answer

a. Y= -3.82+.275X b..4997 c. .71

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