Based on the Following Regression Output, What Conclusion Can You

question 21

Multiple Choice

Based on the following regression output, what conclusion can you reach about ?₁? $\begin{array}{|l|r|l|l|l|l|}\hline {\text { Regression Statistics }} & & & & \\\hline \text { Multiple R } & 0.917214 & & & & \\\hline \text { R Square } & 0.841282 & & & & \\\hline \text { Adjusted R Square } & 0.821442 & & & & \\\hline \text { Standard Error } & 9.385572 & & & & \\\hline \text { Observations } & 10 & & & & \\\hline & & & & & \\\hline\text { ANOVA } & & & & & \\ \hline &\text { df } & \text { SS } & \text { MS } & F & \text { Significance F } \\\hline \text { Regression } & 1 & 3735.306 & 3735.306 & 42.40379 & 0.000186 \\\hline \text { Residual } & 8 & 704.7117 & 88.08896 & & \\\hline \text { Total } & 9 & 4440.017 & & & \\\hline & & & & & \\\hline & \text { Coefficients } & \text { Standard Error } & t \text { Stat } & \text { P-value } & \text { Lower 95\% } \\\hline \text { Intercept } & 31.62378 & 10.44297 & 3.028236 & 0.016353 & 7.542233 \\\hline \text { X Variable 1 } & 1.131661 & 0.173786 & 6.511819 & 0.000186 & 0.73091\\\hline\end{array}$

• A) ? ₁ = 0, with P-value = 0.016353
• B) ? ₁ ? 0, with P-value = 0.016353
• C) ? ₁ = 0, with P-value = 0.000186
• D) ? ₁ ? 0, with P-value = 0.000186

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Definitions:

365-Day Year

A conventional method used in finance to standardize the number of days in a year for interest calculation purposes.

Exact Simple Interest

Interest calculated linearly on the principal amount, where the calculation is based precisely on the time period involved.

365-Day Year

A method of calculating interest that assumes all years have 365 days, used in some financial contexts.

Ordinary Simple Interest

Interest calculated on the principal amount of a loan or deposit, based solely on the principal, rate, and time.