Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 4 [20 marks] The price per share ($) and the annual dividend for a sample of 30 companies are collected and regression results are

image text in transcribed
image text in transcribed
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]

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

Functional Analysis And The Feynman Operator Calculus

Authors: Tepper L Gill, Woodford W Zachary, Zachary Woodford

1st Edition

331927595X, 9783319275956

More Books

Students also viewed these Mathematics questions

Question

c. Are there any prerequisites for the course?

Answered: 1 week ago

Question

6. How can hidden knowledge guide our actions?

Answered: 1 week ago

Question

7. How can the models we use have a detrimental effect on others?

Answered: 1 week ago