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random sample of 42 firms was chosen from the soo firms listed in the Spring 200

ID: 3177793 • Letter: R

Question

random sample of 42 firms was chosen from the soo firms listed in the Spring 2003 specialissue of Business Week (The Business Week Frty Best Performers) The dividend yield (DrvYIELD) ssP and the 2002 earnings per share (EPS) were recorded for these 42 firms. using dividend yield as the dependent ble and EPs as the independent variable, a regression was nun use the computer output below to answer the questons. scatterplot of DIVYIELD vs EPS The regression results are shown below, Variable Coeffi aient Std Err T Stat Inte 0336 MacBook Pro

Explanation / Answer

Answers to the question:

a.

Y^ = 2.0336 +.3740X

b.

Ho : B=0
Ha : B!=0
c.

Reject Ho if p<.05
Do not reject H0 if p>=.05

d. Do not rejec the null hypo: there is not a linear rel bt DIVYEILD and EPS

e. 95% CI is 2.0336+/- 1.96*.5405

f. 95% CI is .3740 +/- 1.96*.2395