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.
-What is the correlation between stock price and EPS?
A) -0.975
B) 0.975
C) 0.906
D) 0.950
E) Cannot be determined from the information given.

Question

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. 
-What is the correlation between stock price and EPS?
A) -0.975 
B) 0.975 
C) 0.906 
D) 0.950 
E) Cannot be determined from the information given.

Quizplus · Accepted Answer

The correlation coefficient between stock price and EPS is given by the value of the correlation coefficient in the regression results, which is 0.975. This indicates a strong positive correlation between the two variables. Therefore, option B is the correct choice.

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