In a Simple Regression Analysis for a Given Data Set

question 38

Multiple Choice

In a simple regression analysis for a given data set, if the null hypothesis β = 0 is rejected, then the null hypothesis ρ = 0 is also rejected. This statement is ________ true.

• A) always
• B) never
• C) sometimes

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Definitions:

Preferred Share

A class of ownership in a corporation with a higher claim on assets and earnings than common stock, often receiving dividends before common shareholders.

Discount Rate

The interest rate that the Federal Reserve charges commercial banks for loans, or a rate used in discounted cash flow analysis to determine the present value of future cash flows.

Compounded Semi-annually

Interest calculation method where the interest is added to the principal twice a year, leading to a growth in the amount at a faster rate than simple interest.

Compounded Quarterly

This term refers to the calculation and addition of interest to the principal sum of a deposit or loan on a quarterly basis.