An investment advisor is studying the relationship between a common stock's price to earnings (P/E) ratio and factors that she thinks would influence it. She has the following data on the earnings per share (EPS) and the dividend percentage (Yield) for a sample of 20 stocks. Stock P/ E EP5 Yield 1 26.79 $2.46 1.42 2 3.63 2.69 4.65 3 44.46 -6.28 4.16 4 41.72 -6.45 1.27 5 18.96 1.66 3.39 6 18.42 2.32 3.86 7 34.82 6.81 4.56 8 36.43 2.13 1.62 9 29.97 2.22 5.16 16 16.86 1.44 1.17 11 1.35 2.93 2.59 12 25.43 2.67 1.64 13 22.14 2.19 3.52 14 24.21 -6.83 1.56 15 36.91 2.29 2.23 16 35.79 1.64 3.36 17 18.99 3.67 1.98 18 36.21 1.71 3.67 19 32.88 6.35 2.21 26 15.19 5.62 3.56 a-1.Develop a multiple linear regression with P/E as the dependent variable. (Round your answers to 2 decimal places and Constant Coef value to 1 decimal place.) P/E = + EPS + Yield. a-2. Develop a correlation matrix. (Negative values should be indicated by a minus sign. Round your answers to 3 decimal places.) P/E EPS EPS Yielda-3. Do any of the correlations indicate multicollinearity? (Round your answer to 3 decimal places.) The correlation between the independent variables That is isb-1. Complete the table. (Negative values should be indicated by a minus sign. Round your Coef, SE Coef and Pvalues to 3 decimal places and t values to 2 decimal places.) Predictor Coefficient SE Coefficient t p Constant EPS Yield b-2. Are either of the two independent variables an effective predictor of P/E? EPS has relationship with P/E while Yieldc-1. Compute the regression equation with only the significant predictors. (Round your answers to 3 decimal places.) P/E + EPS c-2. Interpret the regression coefficient. As EPS by one, P/E byHistogram (response is P/E) 5 4 Frequency 2 0 -20 -15 -10 -5 0 5 10 Residual from the graph, are the residuals normally distributed? O They are normally distributed. O They are not normally distributed.e. Choose the correct option from the following graph. Residuals Versus the Fitted Values (response is PIE) 10 Residual O 10 20 30 40 Fitted value 0 There does not appear to be any problem with homoscedasticity. Q There appears to be problem with homoscedasticitv