In: Statistics and Probability
S |
R-sq |
R-sq(adj) |
1.46695 |
0.09% |
0.00% |
Analysis of Variance
Source |
DF |
SS |
MS |
F |
P |
Regression |
1 |
0.0160 |
0.01597 |
0.01 |
0.933 |
Error |
8 |
17.2156 |
2.15195 |
||
Total |
9 |
17.2316 |
The is 0.3 Correlation Coefficient <<<<<<<<<<<<<<
Solution
The Correlation Coefficient r = 0.3
a) What does the Correlation Coefficient tell you about the direction and strength of the relationship between these variables?
Correlation Coefficient r = 0.3 tells us that there is weak positive relationship between these variables.
b)Using the P value or the critical values for the Pearson coefficient Critical Values Table for Pearson Coefficient is there enough evidence to support a relationship at the 5% level of significance (α = .05) for these variables? Explain how you arrived at your answer
c)Using the result for the Correlation Coefficient compute the Coefficient of Determination (r-squared)
Coefficient of Determination = r2 = (0.3)2 = 0.09%
d)Interpret this value…what information does this give us concerning Earnings and Dividends
Coefficient of Determination =0.09% tells us that only 0.09% variation in the model expained by Earnings and Dividends