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Compute a new variable called networth which equals assets--liabilities. 206 Cha

ID: 3305687 • Letter: C

Question

Compute a new variable called networth which equals assets--liabilities.


206 Chapter 4 Correlation and Regression Current Price- Company ratio earnings ratio Assets Liabilities Microsoft 1.82 Intel Dell Apple 12.51 18.44 10.95 24.57 18.87 77.9 38.3 53.1 11.4 33.7 28.0 53.9 26.0 40.5 2.79 1.28 1.88 Google 10.62 4.5 Source: Lexis Nexis. 50. Provide and interpret a scatterplot of liabilities versus assets 51. Calculate and interpret the correlation coefficient etween liabilities and assets. 2. Provide and interpret a scatterplot of current ratio vers rice-earnings ratio. . Calculate and interpret the correlation coefficient tween current ratio and price-earnings ratio. Compute a new variable, called net worth, which equa ets - liabilities. Provide and interpret a scatterplot of net worth versus ent ratio

Explanation / Answer

54:

Following table shows the new variable Assets - liabilites:

Assets Liabilities Net worth = Assets - Liabilites 77.9 38.3 77.9-38.3=39.6 53.1 11.4 53.1-11.4=41.7 33.7 28 33.7-28=5.7 53.9 26 53.9-26=27.9 40.5 4.5 40.5-4.5=36
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