Use the Following to Answer the Questions Below

question 37

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) .
-Which of the following is the correct interpretation for the regression coefficient of Green?

• A) The regression coefficient indicates that the PE ratio of a firm that is green will, on average, be 2.09 points higher than a firm that is not green with the same profit growth rate and profit margin.
• B) The regression coefficient indicates that the PE ratio of a firm that is green will, on average, be 2.09 points lower than a firm that is not green with the same profit growth rate and profit margin.
• C) The regression coefficient indicates that the PE ratio of a firm that is green will, on average, be 2.09 times higher than a firm that is not green.
• D) The regression coefficient indicates that the PE ratio of a firm that is green will, on average, be 2.09 times lower than a firm that is not green.
• E) The regression coefficient is not significantly different from zero.