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1. You fit a linear regression model to this data. Based on the model fit, how much does the stock price change for each additional
1. You fit a linear regression model to this data. Based on the model fit, how much does the stock price change for each additional dollar of earnings per share?
2. Which company has the smallest residual (in absolute value)?
3. Which company has the smallest residual (in absolute value)?
4. What proportion of the variation in price is explained by the linear regression model?
You work for an investment firm and you are trying to devise a way to model stock price (price, in dollars) for a certain sector as a linear function of earnings per share (explanatory variable, eps, in dollars). You gather the following data and validate that there is evidence of a linear relationship
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