Question
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.)
Price= ___________+ _______________ dividend
b-2. State the decision rule. Use the 0.05 significance level. (Round your answer to 3 decimal places.)
reject the Null if t is not between +/- ___________________________
b-3. Compute the value of the test statistic. (Round your answer to 4 decimal places.)
The test statistic = ___________________
c. Determine the coefficient of determination. (Round your answer to 4 decimal places.)
R2= _____________________________
d-1. Determine the correlation coefficient. (Round your answer to 4 decimal places.)
Correlation coefficient= ______________________
e. If the dividend is $10, what is the predicted price per share? (Round your answer to 4 decimal places.)
Price= _______________________
f. What is the 95% prediction interval of price per share if the dividend is $10? (Round your answers to 4 decimal places.)
(________________________, __________________________)
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