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According to the Output Below, Which of the Following Statement =0.49+14.8EPS= - 0.49 + 14.8 \mathrm { EPS }

Question 1

Multiple Choice

According to the output below, which of the following statement is true about the correlation between stock price and earnings per share (EPS) ? The regression equation is: Stock Price =0.49+14.8EPS= - 0.49 + 14.8 \mathrm { 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 } & T & \mathrm {~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) The correlation is negative.
B) The correlation is not significantly different from zero.
C) The correlation is positive and significantly different from zero.
D) The correlation is positive but not significantly different from zero.
E) Cannot be determined from the information given.

Correct Answer:

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