Is there a linear relationship between the two variables

Reference no: EM131381482

An article in Financial Analysts Journal discusses results of a regression analysis of average price per share P on the independent variable X/k, where X/k is the contemporaneous earnings per share divided by firm-specific discount rate.

The regression was run using a random sample of 213 firms listed in the Value Line Investment Survey. The reported results are where the number in parentheses is the standard error. Is there a linear relationship between the two variables?

P = 16.67 + 0.68X/k(12.03)

Reference no: EM131381482

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