The Regression Printout Below Shows the Results of a Regression

question 76

Multiple Choice

The regression printout below shows the results of a regression analysis intended to link company profits (x) to CEO salary (y) .A sample of 18 CEOs was used. Can you use the sample results shown here to reject a β = 0 null hypothesis at the 5% significance level? Explain.

• A)Yes, since the upper bound on the 95% interval estimate of β is greater than 0, we can reject the β = 0 null hypothesis.
• B)No, since the p-value for the intercept term is greater than the significance level of .05, we can't reject the β = 0 null hypothesis.
• C)Yes, since the p-value for the coefficient of the profit variable is less than .05, we can reject the β = 0 null hypothesis.
• D)No, since t_stat for the profit variable is inside ±2.120, we can't reject the β = 0 null hypothesis.

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Definitions:

Resilient

The ability to quickly recover from difficulties or adapt to challenging situations with strength.

Negative Consequences

Unfavorable or adverse outcomes that result from an action or decision.

Poverty

A situation in which people or groups do not have enough money and basic needs to maintain a minimum quality of life.

Single-parent Homes

Households where a child or children are raised by only one parent due to various circumstances.