Discuss the below:
Q: The following data show that trailing 52 week primary share earnings and books values as reported by 10 companies(the wall Street Journal, March 13/2000).
Company -Earnings-Book Value
Am Elec -25.21 -2.69
Columbia En -23.20 -3.01
Con Ed -25.19 -3.13
Duke Energy -20.17 -2.25
Edison Int'l -13.55 -1.79
Enron Cp. -7.44 -1.27
Peco -13.61 -3.15
Pub Sv Ent -21.86 -3.29
Southn Co. -8.77 -1.86
Unicom -23.22 -2.74
a. Develop a scatter diagram for the data with book value on the x-axis.
b. What is the sample correlation coefficient, and what dose it tell you about the relationship between the earning per share and the book value?