SOLUTION: A recent study by a major financial investment company was interested in determining whether the annual percentage change in stock price for companies is linearly related to the an
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Question 969259: A recent study by a major financial investment company was interested in determining whether the annual percentage change in stock price for companies is linearly related to the annual percent change in profits for the company. The following data was determined for 7 randomly selected companies:
% change stock price
8.4
9.5
13.6
-3.2
7
18.4
-2.1
% change in profit
4.2
5.6
11.2
4.5
12.2
12
-13.4
Based upon this sample information, which of the following is the regression equation?
a) y? = 4.19 +.61x
b) y? = 15.04 + 4.25x
c) y? = 1.19 - 3.00x
d) y? = 20.19 + .005x
Please explain the answer, I have gone through this problem numerous times using the regression equation, and I don't come to any of the provided answers.
Thank you! Answer by Fombitz(32388) (Show Source):
You can put this solution on YOUR website! None of the above.
I show is the best fit (shown in purple). is the closest to it, if that helps.
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