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).
-Based on the F-statistic and associated P-value, we can conclude at α = 0.05 that
A) the regression model is not significant overall.
B) all independent variables in the model are significant.
C) the regression model is significant overall.
D) none of the independent variables in the model are significant.
E) only Profit Margin variable in the model is significant.

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). 
-Based on the F-statistic and associated P-value, we can conclude at α = 0.05 that
A) the regression model is not significant overall. 
B) all independent variables in the model are significant. 
C) the regression model is significant overall. 
D) none of the independent variables in the model are significant. 
E) only Profit Margin variable in the model is significant.

Quizplus · Accepted Answer

The question states that the F-statistic and associated P-value are given, and that we are testing at a significance level of α = 0.05. Typically, in regression analysis, if the F-statistic is significant (i.e. the associated P-value is less than 0.05), we can conclude that the regression model is significant overall. Therefore, choice C is the best answer.

Use the Following to Answer the Questions Below