A Sample of 200 Monthly Observations Is Used to Run

question 21

Multiple Choice

A sample of 200 monthly observations is used to run a simple linear regression: Returns = β₀ + β₁ Leverage + ε. A 5% level of significance is used to study if leverage has a significant influence on returns. The value of the test statistic for the regression coefficient of Leverage is calculated as t₁₉₈ = -1.09, with an associated p-value of 0.2770. The correct decision is to ________.

• A) reject the null hypothesis; we can conclude that leverage significantly explains returns
• B) reject the null hypothesis; we cannot conclude that leverage significantly explains returns
• C) not reject the null hypothesis; we cannot conclude that leverage significantly explains returns
• D) not reject the null hypothesis; we can conclude that leverage significantly explains returns

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Definitions:

Lesbian Mothers

Lesbian mothers are female same-sex couples who parent children together, either through adoption, donor insemination, surrogacy, or by one partner bearing the child.

Gay Fathers

Men who identify as gay and have one or more children, through various means such as adoption, surrogacy, or previous heterosexual relationships.

Harassment

Behavior that disturbs or upsets, and it is characteristically repetitive. In the legal sense, it is behaviors that appear threatening or disturbing.

Same-sex Parents

Couples of the same gender who are raising children together.