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1 In this problem we use Regression Analysis to test the hypothesis that Dividends per share significantly affects price per share of a company. Coefficients(a)
- 1 In this problem we use Regression Analysis to test the hypothesis that Dividends per share significantly affects price per share of a company.
Coefficients(a)
Model
Unstandardized Coefficients
Standardized Coefficients
t
Sig.
B
Std. Error
Beta
B
Std. Error
1
(Constant)
26.805
3.922
6.835
.000
Dividends Per Share Paid
2.408
.328
.811
7.345
.000
aDependent Variable: Price Per Share of Company Stock
Model Summary
Model
R
R Square
Adjusted R Square
Std. Error of the Estimate
1
.811(a)
.658
.646
9.683
aPredictors: (Constant), Dividends Per Share Paid
- Using the SPSS results above, state the Regression Equation (Model) for this problem)
- If an asset does not pay dividends, what will be the price of the asset?
- If an asset pays $3.75 per share, what will be the price of the asset?
- State the Null and Alternate Hypothesis that Dividends per Share may or may not affect the Price per Share for a company
- What is the Critical Z value for the test at .01 Level of Significance?
- What is your conclusion? Explain your answer.
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