Consider the Following Pairs of Observations $\begin{array}{|c|c|c|c|c|c|}\hline x & 2 & 3 & 5 & 5 & 6 \\\hline y & 1.3 & 1.6 & 2.1 & 2.2 & 2.7 \\\hline\end{array}$

question 92

Essay

Consider the following pairs of observations: $\begin{array}{|c|c|c|c|c|c|}\hline x & 2 & 3 & 5 & 5 & 6 \\\hline y & 1.3 & 1.6 & 2.1 & 2.2 & 2.7 \\\hline\end{array}$

a. Construct a scattergram for the data. Does the scattergram suggest that $y$ is positively linearly related to $x$ ?
b. Find the slope of the least squares line for the data and test whether the data provide sufficient evidence that $y$ is positively linearly related to $x$ . Use $\alpha = .05$ .

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Definitions:

Dividend Payout Ratio

The dividend payout ratio is the fraction of net income a firm pays to its stockholders in dividends, expressed as a percentage, showing the percentage of earnings distributed as dividends.

Market Price

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Signifies holding stakes in a corporation, which provides owners with the right to vote and a portion of the company's earnings via dividends.

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Payments made by a corporation to its shareholder members, distributing a portion of the company’s earnings.