A regression model: PE = 8.04 + 0.747 Growth Rate + 0.0516 Profit Margin + 2.09 Green was developed to predict a firm's Price-Earnings Ratio (PE) using
Growth Rate, Profit Margin, and whether the firm is Green (1 = Yes, 0 = No) . Which
Of the following is the correct interpretation for the regression coefficient of Green?
A) The regression coefficient indicates that the PE ratio of a firm that is green will,
On average, be 2.09 higher than a firm that is not green with the same growth rate
And profit margin.
B) The regression coefficient indicates that the PE ratio of a firm that is green will,
On average, be 2.09 lower than a firm that is not green with the same growth rate
And profit margin.
C) The regression coefficient indicates that the PE ratio of a firm that is green will,
On average, be 2.09 times higher than a firm that is not green with the same
Growth rate and profit margin.
D) The regression coefficient indicates that the PE ratio of a firm that is green will,
On average, be 2.09 times lower than a firm that is not green with the same growth
Rate and profit margin.
E) The regression coefficient is not significantly different from zero.
Correct Answer:
Verified
Q7: According to the partial regression analysis
Q8: Regression analysis was performed to develop a
Q9: Data were collected for a sample of
Q10: Using this regression equation: Salary =
Q11: According to the regression analysis output
Q14: A patient is injected with the drug
Q15: Data are collected on the number
Q16: A patient is injected with the drug
Q17: Data were collected for a sample of
Q45: If we were interested in using regression
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents