Given the Following Statistics of a Multiple Regression Model, Can $x _ { 1 }$

question 57

Essay

Given the following statistics of a multiple regression model, can we conclude at the 5% significance level that $x _ { 1 }$ and y are linearly related?
n = 42, k = 6, $\hat { \beta } _ { 1 }$ = -5.30 $S _ {\hat { \beta } _ { 1 }}$ = 1.5

---

Definitions:

Expected Earnings Growth

The projected increase in earnings per share (EPS) over a specific period, often used by investors to gauge company performance.

LaPorta's Study

A series of influential research studies focusing on corporate governance, law, and finance across countries, often emphasizing the role of legal systems in financial development.

Earnings Announcements

Official public statements by companies about their financial performance for a specific period, which can affect their stock prices.

Ball and Brown

Researchers who conducted seminal work in accounting, notably on the relationship between stock prices and companies' earnings announcements.