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)

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
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Chapter4: Equations Of Linear Functions
Section4.5: Correlation And Causation
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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). 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
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?
Explanation
Check
Pivacy Conter Accessiblity
Terms of Use
02021 McGrow Hi LLC AR Rights Resorved
78F Mostly clou
2:
Current stock price
(in dollars)
回 国国
Transcribed Image Text: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). 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 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? Explanation Check Pivacy Conter Accessiblity Terms of Use 02021 McGrow Hi LLC AR Rights Resorved 78F Mostly clou 2: Current stock price (in dollars) 回 国国
38.41
1.13
(in dollars)
28.89
0.96
Figure 1
16.27
0.67
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 tợ at least four decimal places, and round your answers a
ist 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?
Round your answer to at least three decimal places.
日
Explanation
Check
72021 McGraw Hill LLC AN Rights Res
%23
Transcribed Image Text:38.41 1.13 (in dollars) 28.89 0.96 Figure 1 16.27 0.67 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 tợ at least four decimal places, and round your answers a ist 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? Round your answer to at least three decimal places. 日 Explanation Check 72021 McGraw Hill LLC AN Rights Res %23
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