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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.)

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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