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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
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. Also given is the product of the earnings per share and the current stock price for each of the fifteen stocks. (These products, written in the column labelled "ry ", may ald in calculations.) Earnings per Current stock share, x price, y xy (in dollars) (in dollars) 43.32 1,46 63.2472 57.14 2.20 125.708 53.9616 3- 36.96 1.46 30.00 1.31 39.3 25- 40.51 1.74 70.4874 26.77 0.58 23.5576 Current stock price (In dollars) 48.45 1.67 80.9115 32.54 1.70 55.318 59.59 2.77 165.0643 42.44 1.14 48.3816 18.75 0.79 14.8125 28.64 1.01 28.9264 Earnings per share (in dollars) 39.39 1.15 45.2985 Figure 1 20.27 0.53 10.7431 14.67 0.62 9.0954 Send data to calculator v Send data to Excel What is the sample correlation coefficient for these data? Carry your intermediate computations to at least four decimal places and round your answer to at least three decimal places. (If necessary, consult a list of formulas.) X ?Bivariate data for the quantitative variables x and y are given in the table below. These data are plotted in the scatter plot shown next to the table. In the scatter plot, sketch an approximation of the least-squares regression line for the data. 7.1 8.6 11- 6.0 6.6 8.8 10.0 10- 6.8 7.9 X ? 5.6 6.0 8.4 9.5 4.1 3.4 7.5 9.1 4.1 2.4 6.8 5.9 3.0 1.9 3.6 3.0 5.7 5.5 7.9 7.6 4.9 4.1 3.3 2.4 6.5 5.3 47 4.7
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