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Question 4 [20 marks] The price per share ($) and the annual dividend for a sample of 30 companies are collected and regression results are
Question 4 [20 marks] The price per share ($) and the annual dividend for a sample of 30 companies are collected and regression results are shown in the following table: SUMMARY OUTPUT Regression Statistics Multiple R 0.8114 R Square 0.6583 Adjusted R Square 0.6461 Standard Error 9.6828 Observations 30 ANOVA df SS MS F Significance F Regression 5057.55 5057.55 53.9438 0.0000 Residual 28 2625.17 93.76 Total 20 7682.72 Coefficients Standard Error Stat P-value Lower 95% Upper 95% Intercept 26.8054 3.9220 6.8346 0.0000 18.7715 34.8393 Dividend 2.4082 0.3279 7.3446 0.0000 1.7365 3.0798 Using the summary output above, answer the following questions: i. Identify the dependent and independent variables. [2 marks] ii. Determine the correlation coefficient. Interpret. [3 marks] ili. What is the value of the coefficient of determination? Interpret. [3 marks] iv. Determine the regression equation of price per share based on the annual dividend and interpret its coefficients. [5 marks] v. Predict the price per share if annual dividend is $0.55. [2 marks] vi. At the 0.05 significance level, can you conclude that the dividend is a significant variable by using the test of hypothesis? [5 marks]
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