Use the following to answer the questions below.
The following is output from regression analysis performed to develop a model for predicting a firm's Price-Earnings Ratio (PE) based on Growth Rate, Profit Margin, and whether or not the firm is Green (1 = Yes, 0 = No).
-At α = 0.05 we can conclude that
A) Growth Rate is not a significant variable in predicting a firm's PE ratio.
B) Profit Margin is a significant variable in predicting a firm's PE ratio.
C) The regression coefficient associated with Growth Rate is not significantly different from zero.
D) Whether or not a firm is Green is significant in predicting its PE ratio.
E) The regression coefficient associated with whether or not a firm is Green is not significantly different from zero.

Question

Use the following to answer the questions below.
The following is output from regression analysis performed to develop a model for predicting a firm's Price-Earnings Ratio (PE) based on Growth Rate, Profit Margin, and whether or not the firm is Green (1 = Yes, 0 = No). 
-At α = 0.05 we can conclude that
A) Growth Rate is not a significant variable in predicting a firm's PE ratio. 
B) Profit Margin is a significant variable in predicting a firm's PE ratio. 
C) The regression coefficient associated with Growth Rate is not significantly different from zero. 
D) Whether or not a firm is Green is significant in predicting its PE ratio. 
E) The regression coefficient associated with whether or not a firm is Green is not significantly different from zero.

Quizplus · Accepted Answer

The Answer of Use the following to answer the questions below.
The following is output from regression analysis performed to develop a model for predicting a firm's Price-Earnings Ratio (PE) based on Growth Rate, Profit Margin, and whether or not the firm is Green (1 = Yes, 0 = No). 
-At α = 0.05 we can conclude that
A) Growth Rate is not a significant variable in predicting a firm's PE ratio. 
B) Profit Margin is a significant variable in predicting a firm's PE ratio. 
C) The regression coefficient associated with Growth Rate is not significantly different from zero. 
D) Whether or not a firm is Green is significant in predicting its PE ratio. 
E) The regression coefficient associated with whether or not a firm is Green is not significantly different from zero.

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