Based on the Output Below from Regression Analysis Performed to Develop

question 29

Multiple Choice

Based on the output below from regression analysis performed to develop a model for predicting a firm's Price-Earnings Ratio (PE) based on Growth Rate, Profit Margin,
And whether or not the firm is Green (1 = Yes, 0 = No) , we can conclude (α = .05)
That The regression equation is
$\mathrm { PE } = 8.04 + 0.757$ Growth Rate $+ 0.0516$ Profit Margin $+ 2.09$ Green?
$\begin{array} { l r r r r } \text { Predictor } & \text { Coef } & \text { SE Coef } & \text { T } & \text { P } \\ \text { Constant } & 8.043 & 1.570 & 5.12 & 0.000 \\ \text { Growth Rate } & 0.7569 & 0.1355 & 5.59 & 0.000 \\ \text { Profit Margin } & 0.05162 & 0.03239 & 1.59 & 0.139 \\ \text { Green? } & 2.0900 & 0.7945 & 2.63 & 0.023 \\ \mathrm {~S} = 1.12583 & \mathrm { R } - \mathrm { Sq } = 87.8 \end{array}$

• A) Growth Rate is not a significant variable in predicting a firm's PE ratio.
• B) Profit Margin is a significant variable in predicting a firm's PE ratio.
• C) The regression coefficient associated with Growth Rate is not significantly
• Different from zero.
• D) Whether or not a firm is Green is significant in predicting its PE ratio.
• E) The regression coefficient associated with Profit Margin is significantly different
• From zero.

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Definitions:

Federal Minimum Wage

The lowest hourly wage that employers can legally pay their workers, as mandated by federal law in the United States.

Salary

A fixed regular payment, typically paid on a monthly or biweekly basis but often expressed as an annual sum, made by an employer to an employee.

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A theory in psychology proposed by Abraham Maslow that hierarchical levels of human needs motivate behavior.