A Prediction Equation for Starting Salaries (In $1,000s) and SAT

question 112

Multiple Choice

A prediction equation for starting salaries (in $1,000s) and SAT scores was performed using simple linear regression. In the regression printout shown below, what can be said about the level of significance for the overall model?

• A) SAT is not a good predictor for starting salary.
• B) The significance level for the intercept indicates the model is not valid.
• C) The significance level for SAT indicates the slope is equal to zero.
• D) The significance level for SAT indicates the slope is not equal to zero.
• E) None of the above

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Definitions:

Underpricing

The practice of listing a company's stock at a lower price than its market value during its IPO, typically to ensure the stock is fully subscribed.

Indirect Flotation Cost

Expenses indirectly incurred by a company when raising new capital, such as underpricing or the costs associated with time and effort.

Filing Fees

Charges required to file documents with a governmental body or court, often mandatory for legal processes, registrations, or applications.