What is the value of sample correlation coefficient

Reference no: EM131314299

1. Corporate share repurchase programs are often touted as a benefit for shareholders. But Robert Gabele, director of insider research for First Call/ Thomson Financial, noted that many of these programs are undertaken solely to acquire stock for a company's incentive options for top managers. Across all companies, existing stock options in 1998 represented 6.2 per cent of all common shares outstanding. The following data show the number of shares covered by option grants and the number of shares outstanding for 13 companies ( Bloomberg personal Finance, January/February 2000) Shares of option Grants Outstanding ( millions) X Common shares outstanding (millions) Y Adobe Systems 20.3 61.8 Apple computers 52.7 160.9 Applied materials 109.1 375.4 Autodesk 15.7 58.9 Best Buy 44.2 203.8 Fruit of the Loom 14.2 66.9 ITT Industries 18.0 87.9 Merril Lynch 89.9 365.5 Novell 120.2 335.0 Parametric Technology 78.3 269.3 Reebok International 12.8 56.1 Silicon Graphics 52.6 188.8 Toys "R" Us 54.8 247.6

a. Develop the estimated regression equation that could be used to estimate the number of shares of option grants outstanding given the number of common shares outstanding.

b. Use the estimated regression equation to estimate the number of shares of option grants outstanding for a company that has 150 million shares of common stock outstanding.

c. Do you believe the estimated regression equation would provide a good prediction of the number of shares of option grants outstanding? Use r2 to support your answer.

d. What is the value of sample correlation coefficient?

Reference no: EM131314299

Questions Cloud

What will be the pressure head at a : A liquid flows from A to B in a horizontal pipe line shown at a rate of 3 ft3 /s with a friction loss of 0.45 ft of flowing fluid. For a pressure head at B of 24 in., what will be the pressure head at A?

Construct a truth table and find minimized boolean function : Construct a truth table and find the minimized Boolean function to implement the logic telling the director when to hire. Draw a circuit diagram for the Boolean function using any Logic Design Simulator (provide only a screenshot)

What is present value of cash flows : Zevon Co. has identified an investment project with the following cash flows. Year Cash Flow 1 $ 1,310 2 1,270 3 1,600 4 1,960 Requirement 1: Assume the discount rate is 11 percent, what is the present value of these cash flows? What is the present v..

Creating a positive work environment : Let's talk about creating a positive work environment. Creating a work environment that is positive and safe can help avoid employee conflicts.

What is the value of sample correlation coefficient : Do you believe the estimated regression equation would provide a good prediction of the number of shares of option grants outstanding? Use r2 to support your answer.

How the stakeholder benefits from the organization : In a well-written paper, determine and examine the healthcare stakeholders (both internal and external) for an acute care hospital. You should specifically address how the stakeholder benefits from the organization and the organization's responsib..

Compute the upward force on the device from water and air : Compute the upward force on the device from water and air. Use the results of Problem as well as any other data given in that problem that you may need.

Identified an investment project with the cash flow : Zevon Co. has identified an investment project with the following cash flows. Year Cash Flow 1 $ 1,310 2 1,270 3 1,600 4 1,960. What is the present value at 16 percent? what is the present value of these cash flows?

At what price per share will preferred stock be offered : Flotation costs for an issue this size amount to 5 percent of the total amount of preferred stock sold. These costs are deducted from gross proceeds in determining the net proceeds to the company. (Ignore any tax considerations.)

User Account

All Pages