Use the Following to Answer the Question(s) Below

question 3

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.
-Which of the following statements is true about the correlation between stock price and EPS?

• 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) We fail to reject the null hypothesis Hο : ρ ≠ 0.
• E) As t statistic for the correlation coefficient test equals 15.82 and associated P-value is very small, we fail to support the alternative hypothesis HΑ : ρ ≠ 0.

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Definitions:

Choctaw Warriors

Members of the Choctaw nation, historically recognized for their martial prowess and notably serving as code talkers during World Wars.

Louis XV

King of France from 1715 to 1774, known for his lavish lifestyle and the significant debt accumulated during his reign.

Deerskins

The hides of deer, which have been used historically and in contemporary times for clothing, accessories, and other products due to their durability and texture.