Math Problem Statement
Following is information on the price per share and the dividend for a sample of 30 companies.
Company Price per Share Dividend 1 $ 21.55 $ 3.44 2 23.72 3.66 . . . . . . . . . 39 83.97 19.00 40 86.21 18.71 Calculate the regression equation that predicts price per share based on the annual dividend. (Round your answers to 4 decimal places.) Price = + dividend
Solution
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Math Problem Analysis
Mathematical Concepts
Linear Regression
Statistics
Formulas
y = a + bx (linear regression equation)
b = (nΣxy - ΣxΣy) / (nΣx² - (Σx)²) (slope calculation)
a = (Σy - bΣx) / n (intercept calculation)
Theorems
Least Squares Method
Suitable Grade Level
Undergraduate / College Level
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