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

question 66

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 $= - 0.49 + 14.8 \mathrm { EPS }$
$\begin{array} { l r r r r } \text { Predictor } & \text { Coef } & \text { SE Coef } & T & \mathrm {~P} \\ \text { Constant } & - 0.486 & 4.032 & - 0.12 & 0.906 \\ \text { EPS } & 14.8129 & 0.9437 & 15.70 & 0.000 \end{array}$
$$S = 7.63235 \quad \mathrm { R } - \mathrm { Sq } = 95.0 \%$$

• 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.

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