Exhibit 15-6
Below You Are Given a Partial Computer Output $\beta$

question 24

Multiple Choice

Exhibit 15-6
Below you are given a partial computer output based on a sample of 16 observations.
-Refer to Exhibit 15-6. We want to test whether the parameter $\beta$ ₁ is significant. The test statistic equals

• A)-1.4
• B)1.4
• C)3.6

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Definitions:

Complex Capital Structure

A financial structure that includes various forms of securities, such as different classes of stock and convertible securities, which can affect the computation of earnings per share.

Diluted Earnings

A measure of a company's profitability that accounts for all potential shares that could be outstanding, providing a worst-case scenario for earnings per share.

Basic Earnings

Net income divided by the number of outstanding shares, representing a company's profit allocated to each share of stock.

Convertible Bonds

Bonds issued by a corporation that can be converted into a predetermined number of shares of the company's stock.