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The accompanying table shows the earnings per share (in dollars) and the dividends per share (in dollars) for 6 companies in a recent year. Complete
The accompanying table shows the earnings per share (in dollars) and the dividends per share (in dollars) for 6 companies in a recent year. Complete parts (a) through (d) below. Click here to view the data table. Click here to view the table of critical values for the Pearson correlation coefficient. (a) Display the data in a scatter plot. Choose the correct graph below. O A. O B. O c. O D. 3- 3- 2- HHHH Dividends per share ($) Dividends per share ($) Dividends per share ($) Dividends per share ($ w 9 Earnings per share ($) Earnings per share ($) Earnings per share ( Earnings per share ($) (b) Calculate the sample correlation coefficient r. r= (Round to three decimal places as needed.) (c) Describe the type of correlation, if any, and interpret the correlation in the context of the data. There is |linear correlation. Interpret the correlation. Choose the correct answer below. A. Based on the correlation, there does not appear to be any relationship between companies' earnings per share and their dividends per share. O B. Increases in companies' earnings per share cause their dividends per share to decrease. O C. As companies' earnings per share increase, their dividends per share tend to decrease. D. Increases in companies' earnings per share cause their dividends per share to increase. O E. As companies' earnings per share increase, their dividends per share tend to increase. OF. Based on the correlation, there does not appear to be a linear relationship between companies' earnings per share and their dividends per share. (d) Use the table of critical values for the Pearson correlation coefficient to make a conclusion about the correlation coefficient. Let a = 0.01. The critical value is . Therefore, there sufficient evidence at the 1% level of significance to conclude that between companies' earnings per share and their dividends per share. (Round to three decimal places as needed.)
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