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Comparison of Annual Dividends

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A random sample of 85 utility stocks was taken to compare the amount of their annual dividends to the annualized yields of the dividends. The data are given in following Table (see attachment)
a. Find the correlation coefficient.
b. Can we conclude that the variables are positively associated within the population
of all utilities? Use alpha= .05
c. Determine the regression equation and write about equation in brief.

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Solution Summary

This solution shows step-by-step calculations to determine the correlation coefficient and the regression equation using a scatter diagram. It also conducts a statistical analysis in presenting the null and alternative hypothesis, calculating the test statistic and comparing it to the p-value. A decision is then made to accept or reject the null hypothesis.

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Please see the attachments.
Calculations are done in Excel.

A random sample of 85 utility stocks was taken to compare the amount of their annual dividends to the annualized yields of the dividends. The data are given in following Table.
a. Find the correlation coefficient.
b. Can we conclude that the variables are positively associated within the population of all utilities? Use α = .05
c. Determine the regression equation and write about equation in brief

Answer

The general form of simple linear regression is Y= a + bX
Where Y is the dependent variable and X is the independent variable. ...

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