We Have Collected Price Per Share and Dividend Information from a Sample

question 133

Multiple Choice

We have collected price per share and dividend information from a sample of 30 companies. The slope in this instance indicates:

• A) for each additional dollar in stock price, we can anticipate an additional $2.73 in dividend.
• B) for each additional dollar in stock price, we can anticipate an additional $3.68 in dividend.
• C) for each additional dollar in stock price, we can anticipate an additional $0.27 in dividend.
• D) for each additional dollar in dividend, we can anticipate an additional $2.71 in stock price.
• E) for each additional dollar in dividend, we can anticipate a drop of $3.68 in stock price.

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Definitions:

Sampling Distribution

The distribution of a statistic based on all possible random samples that can be drawn from a given population.

Sample Means

The average values derived from samples, considered as estimations of the population mean, crucial in the field of inferential statistics.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values; a low standard deviation indicates that the values are close to the mean.

Population

The complete set of items or individuals that are the objects of a statistical study.