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A Preferred Stock's Par Value Establishes the Base Used for Calculating

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A preferred stock's par value establishes the base used for calculating the preferred stockholders' dividend.


Definitions:

Linear Model

A mathematical model that assumes a linear relationship between the input variables (independent) and the single output variable (dependent).

Scatterplot

An illustrative technique in statistics that depicts the correlation between two distinct sets of data using a collection of points on a two-dimensional graph.

Data Set

A collection of related sets of information that are composed of separate elements but can be manipulated as a unit by a computer.

Residuals

The differences between observed values and the values predicted by a model in statistical analysis.

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