(See Solution) A regression analysis of share price was conducted on standardized dividends per share (D) and standardized earnings (R). The results are given in


Question: A regression analysis of share price was conducted on standardized dividends per share (D) and standardized earnings (R). The results are given in the following equation. The author also reports that the R 2 is 0.56. What can you say about this regression?

\(P=22.59+5.26 \mathrm{D}+5.38 \mathrm{R}\)

\((20.87)\) \(\left( 21.37 \right)\)

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