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A nancial analyst is examining the relationship between stock prices and earnings per share. She chooses sixteen publicly traded companies at random and records for

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A nancial analyst is examining the relationship between stock prices and earnings per share. She chooses sixteen 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 l2 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}. Based on these data, she computes the least-squares regression A line to be y = -0.154 + 0.044x. This line, along with a scatter plot of her data, is shown below. Earnings per share, x Current stock price, y (in dollars) (in dollars) 57.61 2.79 3?.61 1.52 . [3.68 0.58 49.33 1.69 [5.99 0.65 3 29.98 1.49 E 172' x 43.48 1.49 g s .. a 42.49 l.l() '3' E 58.58 2.28 E U 28.73 0.8] 22.0] (1.65 I 51.41 2.69 ' ' 42.08 1.93 Earnings per share ' I ll 26.18 0.93 (n d\" a\") 40.13 1.2] 32.53 1.83 Send data to calculator v Based on the analyst's data and regression line, complete the following. (a) For these data, current stock prices that are greater than the mean of the current stock prices tend to be paired with values for earnings per share that are (Choose one) '7 the mean of the values for earnings per share. (b) According to the regression equation, for an increase of one dollar in earnings per share, there is a corresponding increase of how many dollars in current stock pnce? I]

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