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You assigned to predict next years EPS (earnings per share) for a company.
You were told there is a linear trend and to use regression to predict the earnings.
Create a simple linear regression model and
determine if there exists a linear relationship between EPS and time.
You are looking at the past 9 years and the EPS:
Time Period , EPS
0.0 , 0.88
1.0 , 0.78
2.0 , 0.98
3.0 , 0.97
4.0 , 0.72
5.0 , 1.09
6.0 , 1.32
7.0 , 1.73
8.0 , 1.59
You can download required data if you wish
Enter your answer below (4 decimal places).
P-value:
Select Answer:
Fail to Reject Null Hypothesis
Reject Null Hypothesis
