Following is information on the price per share and the dividend for a sample of 30 companies Obs Price Dividend 1 20 11 3 14 2 22 12 3 36 3 31 50 0 46 4 33 68 7 99 5 35 97 0 77 6 36 23 8 46 7 36 27 7 62 8 38 10 8 03 9 38 96 6 33 10 39 76 7 96 11 43 55 8 95 12 49 19 9 61 13 53 84 11 11 14 54 52 13 28 15 55 21 10 22 16 57 17 9 53 17 57 51 12 60 18 58 41 10 43 19 59 62 7 97 20 60 71 9 19 21 64 12 16 50 22 64 77 16 10 23 64 85 13 76 24 65 06 10 54 25 66 54 21 15 26 68 29 14 30 27 69 67 24 42 28 75 01 11 54 29 78 02 17 65 30 80 11 17 36 a Calculate the regression equation that predicts price per share based on the annual dividend (Round your answers to 4 decimal places ) b 1 State the null and alternate hypotheses b 2 State the decision rule Use the 0 05 significance level (Round your answer to 3 decimal places ) b 3 Compute the value of the test statistic (Round your answer to 4 decimal places ) b 4 What is your decision regarding H 0 b 5 Can we conclude the slope is not equal to zero c Determine the coefficient of determination (Round your answer to 4 decimal places ) d 1 Determine the correlation coefficient (Round your answer to 4 decimal places ) d 2 Can you conclude that it is greater than 0 using the 0 05 significance level e If the dividend is $10, what is the predicted price per share (Round your answer to 4 decimal places ) f What is the 95 prediction interval of price per share if the dividend is $10 (Round your answers to 4 decimal places ) Price dividend HO B 0 and Hi B10 OHO B 0 and Hy B 0 OHO B 0 and H370 Ho B 0 and Hi B 0 Reject Ho ift is not between The test statistic is Decision Yes O No R2 Correlation coefficient Ho We conclude that the correlation in the population is Zero Price Price dividend HO B 0 and Hi B10 OHO B 0 and Hy B 0 OHO B 0 and H370 Ho B 0 and Hi B 0 Reject Ho ift is not between The test statistic is Decision Yes O No R2 Correlation coefficient Ho We conclude that the correlation in the population is Zero Price

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Following is information on the price per share and the dividend for a sample of 30 companies. Obs Price Dividend 1 20.11 3.14 2 22.12

Following is information on the price per share and the dividend for a sample of 30 companies.

Obs	Price	Dividend
1	20.11	3.14
2	22.12	3.36
3	31.50	0.46
4	33.68	7.99
5	35.97	0.77
6	36.23	8.46
7	36.27	7.62
8	38.10	8.03
9	38.96	6.33
10	39.76	7.96
11	43.55	8.95
12	49.19	9.61
13	53.84	11.11
14	54.52	13.28
15	55.21	10.22
16	57.17	9.53
17	57.51	12.60
18	58.41	10.43
19	59.62	7.97
20	60.71	9.19
21	64.12	16.50
22	64.77	16.10
23	64.85	13.76
24	65.06	10.54
25	66.54	21.15
26	68.29	14.30
27	69.67	24.42
28	75.01	11.54
29	78.02	17.65
30	80.11	17.36

a. Calculate the regression equation that predicts price per share based on the annual dividend. (Round your answers to 4 decimal places.)

b-1. State the null and alternate hypotheses.

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b-2. State the decision rule. Use the 0.05 significance level. (Round your answer to 3 decimal places.)

b-3. Compute the value of the test statistic. (Round your answer to 4 decimal places.)

b-4. What is your decision regarding H₀?

image text in transcribed

b-5. Can we conclude the slope is not equal to zero?

image text in transcribed

c. Determine the coefficient of determination. (Round your answer to 4 decimal places.)

d-1. Determine the correlation coefficient. (Round your answer to 4 decimal places.)

d-2. Can you conclude that it is greater than 0 using the 0.05 significance level?

image text in transcribed

e. If the dividend is $10, what is the predicted price per share? (Round your answer to 4 decimal places.)

f. What is the 95% prediction interval of price per share if the dividend is $10? (Round your answers to 4 decimal places.) image text in transcribed

Price = + dividend HO: B = 0 and Hi: B10 OHO: B = 0 and Hy: B = 0 OHO: B #0 and H370 Ho:B 0 and Hi: B > 0 Reject Ho ift is not between : The test statistic is Decision Yes O No R2 Correlation coefficient Ho. We conclude that the correlation in the population is Zero. Price Price = + dividend HO: B = 0 and Hi: B10 OHO: B = 0 and Hy: B = 0 OHO: B #0 and H370 Ho:B 0 and Hi: B > 0 Reject Ho ift is not between : The test statistic is Decision Yes O No R2 Correlation coefficient Ho. We conclude that the correlation in the population is Zero. Price