A Multiple Regression Analysis Produced the Following Tables These Results Indicate That ____________

question 71

Multiple Choice

A multiple regression analysis produced the following tables. $$\begin{array} { | c | c | c | c | c | } \hline \text { Predictor } & \text { Coefficients } & \text { Stardard Error } & t \text { Statistic } & p \text {-value } \\\hline \text { Irtercept } & 624.5369 & 78.49712 & 7.956176 & 6.88 E - 06 \\\hline \boldsymbol { x } _ { 1 } & 8.569122 & 1.652255 & 5.186319 & \mathbf { 0 . 0 0 0 3 0 1 } \\\hline \mathbf { x } _ { 2 } & 4.736515 & 0.699194 & 6.774248 & \mathbf { 3 . 0 6 E - 0 5 } \\\hline\end{array}$$ $$\begin{array} { | c | c | c | c | c | c | } \hline \text { Source } & \mathrm { df } & \text { SS } & \text { MS } & F & p \text {-value } \\\hline \text { Repression } & 2 & 1660914 & \mathbf { 8 3 0 4 5 7 . 1 } & 58.31956 & 1.4 \mathrm { E } - 06 \\\hline \text { Residual } & 11 & 156637.5 & 14239.77 & & \\\hline \text { Total } & 13 & 1817552 & & & \\\hline\end{array}$$ These results indicate that ____________.

• A)none of the predictor variables are significant at the 5% level
• B)each predictor variable is significant at the 5% level
• C)x₁ is the only predictor variable significant at the 5% level
• D)x₂ is the only predictor variable significant at the 5% level
• E)the intercept is not significant at 5% level

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Definitions:

Residual Income

The net income an entity generates above its cost of capital, effectively measuring excess profits that exceed the minimum expected return.

Divisional Operating Income

The earnings generated from the operations of a specific division within a company, excluding costs and income from other divisions or corporate activities.

Investment Turnover

A ratio that measures the efficiency of a company in using its investments to generate sales or revenue.

Operating Income

The income generated from the primary activities of a company, before subtracting any interest and tax expenses.