Given below is the scatter plot of the price/earnings ratio versus earnings per share of 20 U.S.companies.There appears to be a negative relationship between price/earnings ratio and earnings per share. 
Definitions:
Empirical Investigation
The process of collecting and analyzing data to obtain evidence that can confirm or refute a hypothesis, theory, or observation.
Optimal Choices
Optimal choices refer to decision-making that maximizes utility or benefit within given constraints, finding the best possible outcome from a set of alternatives.
Scarcity
The basic economic issue arises from the reality of endless human desires facing the constraint of finite resources.
Normative
Pertaining to or expressing judgments based on values, standards, or ideals, often concerning what is right or wrong, or what ought to be.
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