Use the Following to Answer the Questions Below

question 22

Multiple Choice

Use the following to answer the questions below.
The following is output from regression analysis performed to develop a model for predicting a firm's Price-Earnings Ratio (PE) based on Growth Rate, Profit Margin, and whether or not the firm is Green (1 = Yes, 0 = No) .
-At α = 0.05, we can conclude that

• A) Growth Rate is not a significant variable in predicting a firm's PE ratio.
• B) Profit Margin is a significant variable in predicting a firm's PE ratio.
• C) the regression coefficient associated with Growth Rate is not significantly different from zero.
• D) whether or not a firm is Green is significant in predicting its PE ratio.
• E) the regression coefficient associated with whether or not a firm is Green is not significantly different from zero.

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Definitions:

Aesthetically Pleasing

Something described as aesthetically pleasing is considered to be visually attractive or beautiful in appearance.

Rationalize

Rationalizing is the process of eliminating the square root or imaginary number from the denominator of a fraction.

Simplify

To simplify in mathematics means to alter an expression to a more concise, equivalent form, making it easier to work with or understand.

Expression

A combination of symbols, numbers, and operators (+, -, *, /) that together define a mathematical quantity or relationship.