What Would You Conclude If You Fail to Reject H₀

question 229

Multiple Choice

What would you conclude if you fail to reject H₀ : β₁ = β₂ = ∙ ∙ ∙ ∙ ∙ ∙ = β_k = 0?

• A)No relationship exists between the dependent variable and the independent variables.
• B)A strong relationship exists among the independent variables.
• C)The independent variables are good predictors of the dependent variable.
• D)More information is needed to answer the question.

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Definitions:

Economic Profits

Economic profits refer to the excess returns a firm makes above its opportunity costs, factoring in both explicit and implicit costs.

Profit-Maximizing

The process of finding the level of output at which a firm makes the highest profit.

Short Run

A period in which at least one factor of production is fixed and cannot be varied by the firm.

Long Run

A period sufficient for all inputs in production to be adjusted, including physical capital and labor.