Exhibit 15-6
Below You Are Given a Partial Computer Output $\beta$

question 98

Multiple Choice

Exhibit 15-6
Below you are given a partial computer output based on a sample of 16 observations.
-Refer to Exhibit 15-6. Carry out the test of significance for the parameter $\beta$ ₁ at the 1% level. The null hypothesis should be

• A)rejected
• B)not rejected
• C)revised
• D)None of these alternatives is correct.

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Definitions:

Discount Rate

The discount rate is the interest rate used to determine the present value of future cash flows in discounted cash flow analysis.

Discount Periods

Time frames during which a payer can make payment less than the nominal amount due before a specified due date to receive a discount.

Discount Rate

The interest rate charged by central banks for loans to commercial banks or the rate used in discounted cash flow analysis to determine the present value of future cash flows.

Present Value

The present worth of a future amount of money or series of cash flows, considering a certain rate of return.