A recent study by a major financial investment company was interested in determining whether the annual percentage change in stock price for companies is linearly related to the annual percent change in profits for the company. The following data was determined for 8 randomly selected companies:
%change stock price % change in profit
8.4 4.2
9.5 5.6
13.6 11.2
-3.2 4.5
7 12.2
18.4 12
-2.1 -13.4
Based on this sample information, which of the following is the regression equation?
a. y 1.19-3.00 x
b·D=-4.198-0.612x
c. 0.612 +4.198 x d,
D = 4.198 + 0.612 x