Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Following is information on the price per share and the dividend for a sample of 30 companies. Obs Price Dividend 1 20.19 3.14 2 22.20

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

Obs Price Dividend
1 20.19 3.14
2 22.20 3.36
3 31.58 0.46
4 33.76 7.99
5 36.05 0.77
6 36.31 8.46
7 36.35 7.62
8 38.18 8.03
9 39.04 6.33
10 39.84 7.96
11 43.63 8.95
12 49.27 9.61
13 53.92 11.11
14 54.60 13.28
15 55.29 10.22
16 57.25 9.53
17 57.59 12.60
18 58.49 10.43
19 59.70 7.97
20 60.79 9.19
21 64.20 16.50
22 64.85 16.10
23 64.93 13.76
24 65.14 10.54
25 66.62 21.15
26 68.37 14.30
27 69.75 24.42
28 75.09 11.54
29 78.10 17.65
30 80.19 17.36

JUST NEED HELP WITH A, E, F

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

Price = ? + 2.4082 dividend

b-1.State the null and alternate hypotheses.

H0: =0 andH1: 0Correct

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

2.048

b-3.Compute the value of the test statistic.(Round your answer to 4 decimal places.) 7.3446

b-4What is your decision regardingH0?

Reject

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

yes

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

0.6583

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

0.8114

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

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.)

?, ? (2 numbers)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Probability Theory A Concise Course

Authors: Y A Rozanov

1st Edition

0486321142, 9780486321141

More Books

Students also viewed these Mathematics questions