Use the Following to Answer the Question(s) Below

question 26

Multiple Choice

Use the following to answer the question(s) below.
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?

• A) -0.975
• B) 0.975
• C) 0.906
• D) 0.950
• E) Cannot be determined from the information given.

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Definitions:

Sellers

Individuals or entities that offer goods or services for sale.

Tax

A mandatory monetary fee or different form of charge placed on a taxpayer by a government entity to finance government operations and assorted public expenses.

Good

A material item or service that satisfies a want or need; can be economic (having monetary value) or free (like air) but is essential for transactions in the market.

Total Surplus

The sum of consumer surplus and producer surplus in a market, representing the total benefits that buyers and sellers receive from participating in the market.