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:

Idle Capacity

Unused or underutilized production capacity within a business, often resulting in inefficiency and increased costs.

Organization-Sustaining Costs

Costs that are not directly attributable to any specific business activity, product, or service but are necessary for the overall operation of an organization.

Production Order Processing

The series of steps involved in producing goods or services, from the initiation of the order to its completion.

Cost Analysis Report

A document that details the costs associated with a project or a product, breaking down each component and analyzing its impact on the overall cost.