Consider the Following Partially Completed Computer Printout for a Regression

question 24

Multiple Choice

Consider the following partially completed computer printout for a regression analysis where the dependent variable is the price of a personal computer and the independent variable is the size of the hard drive. Based on the information provided,which of the following statements is true if alpha = .05?

• A)The slope is not significantly different from 0 because p = 0.84 is greater than 0.05.
• B)The slope is significantly different from 0 because p = 9.95 is greater than 0.05.
• C)The slope is not significantly different from 0 because p = 9.95 is greater than 0.05.
• D)The slope is significantly different from 0 because p = 9.95E-10 is less than 0.05.

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Definitions:

Ceteris Paribus

A Latin phrase that means "all other things being equal," used in economics to isolate the effect of one variable changes while holding others constant.

Investment

Allocating financial assets or resources in the hope of receiving future income or profit.

Market Rate Of Interest

The prevailing interest rate available in the marketplace for investments, loans, and savings, varying based on demand, supply, and monetary policy.

Normal Rate Of Return

The average or expected return on investment typical for a given industry or sector, accounting for risk.