Following is information on the price per share and the dividend for a sample of 30 companies.
Company Price per Share Dividend
1 $ 20.00 $ 3.14
2 22.01 3.36
. . .
. . .
. . .
29 77.91 17.65
30 80.00 17.36
a. Calculate the regression equation that predicts price per share based on the annual dividend. (Round your answers to 4 decimal places.)
b-1. State the null and alternate hypotheses.
multiple choice 1
H0: β = 0 and H1: β ≠ 0
H0: β = 0 and H1: β = 0
H0: β ≠ 0 and H1: β ≠ 0
H0: β ≤ 0 and H1: β > 0
b-2. State the decision rule. Use the 0.05 significance level. (Round your answers to 3 decimal places.)
b-3. Compute the value of the test statistic. (Round your answer to 4 decimal places.)
b-4. What is your decision regarding H0?
b-5. Can we conclude the slope is not equal to zero?
multiple choice 2
Yes
No
c. Determine the coefficient of determination. (Round your answer to 4 decimal places.)
d-1. Determine the correlation coefficient. (Round your answer to 4 decimal places.)
d-2. Can you conclude that it is greater than 0 using the 0.05 significance level?
e. If the dividend is $10, what is the predicted price per share? (Round your answer to 4 decimal places.)
f. What is the 95% prediction interval of price per share if the dividend is $10? (Round your answers to 4 decimal places.)