In a Simple Regression, Which Would Suggest a Significant Relationship

question 132

Multiple Choice

In a simple regression, which would suggest a significant relationship between X and Y?

• A)Large p-value for the estimated slope.
• B)Large t statistic for the slope.
• C)Large p-value for the F statistic.
• D)Small t statistic for the slope.

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Definitions:

Price/earnings Ratio

A valuation metric for companies, calculated as the market value per share divided by the earnings per share.

Excess Cash

Refers to the amount of cash held by a company that exceeds the normal operational needs, often indicating a potential for investment, distribution to shareholders, or acquisition.

Dividend

A part of a company's profits distributed to its shareholders, usually four times a year.

Share Repurchase

A process where a company repurchases its own stock from the market, leading to a decrease in the total shares available publicly.