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

question 10

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 $= - 0.49 + 14.8$ EPS

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

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

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

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