Homework Sourse1 Fill in the blank For these data values for earnings per s
1. Fill in the blank: For these data, values for earnings per share that are less than the mean of the values for earnings per share tend to be paired with current stock prices that are _____ the mean of the current stock prices.
Choose one
greater than
less than
2. According to the regression equation, for an increase of one dollar in earnings per share, there is a corresponding increase of how many dollars in current stock price?
3. From the regression equation, what is the predicted current stock price (in dollars) when the earnings per share is 17.84 dollars? (Round your answer to at least two decimal places.)
4. From the regression equation, what is the predicted current stock price (in dollars) when the earnings per share is 23.03 dollars? (Round your answer to at least two decimal places.)
| Earning per share, X (in dollars | Current stock price Y (indollars) |
| 56.48 | 2.14 |
| 43.36 | 1.54 |
| 26.80 | 0.91 |
| 42.71 | 1.09 |
| 17.84 | 0.58 |
| 32.79 | 1.66 |
| 36.58 | 1.54 |
| 14.20 | 0.60 |
| 49.88 | 1.64 |
| 36.00 | 0.98 |
| 57.93 | 2.85 |
| 22.44 | 0.48 |
| 29.96 | 1.40 |
| 41.98 | 1.76 |
| 29.93 | 1.02 |
Solution
1.
The slope is positive. (0.043)
Thus, lower values of x tend to be paired with lower values of y.
Thus, the answer is LESS THAN. [ANSWER]
*********************
2.
As the slope = 0.043, there will be an increase of $0.043. [answer]
**************************
3.
Plugging in x = 17.84 in
y^ = -0.193 + 0.043x
Then
y^ = -0.193 + 0.043(17.84)
= $0.57412 [ANSWER]
****************************
4.
Plugging in x = 23.03 in
y^ = -0.193 + 0.043x
Then
y^ = -0.193 + 0.043(23.03)
= $0.79729 [ANSWER]
