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Stock Prices and Earnings Per Share (EPS) Data Were Collected =0.49+14.8= - 0.49 + 14.8

Question 17

Multiple Choice

Stock prices and earnings per share (EPS) data were collected for a sample of 15
Companies. Below are the regression results. The dependent variable is Stock Price.
What is the correlation between stock price and EPS?
Regression Analysis: Stock Price versus EPS The regression equation is
Stock Price =0.49+14.8= - 0.49 + 14.8 EPS

 Predictor  Coef  SE Coef  T  P  Constant 0.4864.0320.120.906 EPS 14.81290.943715.700.000\begin{array} { l r r r r } \text { Predictor } & \text { Coef } & \text { SE Coef } & \text { T } & \text { P } \\ \text { Constant } & - 0.486 & 4.032 & - 0.12 & 0.906 \\ \text { EPS } & 14.8129 & 0.9437 & 15.70 & 0.000 \end{array}

S=7.63235RSq=95.0%S = 7.63235 \quad \mathrm { R } - \mathrm { Sq } = 95.0\%


A) -.975
B) .975
C) .906
D) .950
E) Cannot be determined from the information given.

Correct Answer:

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