The Accompanying Table Shows the Regression Results When Estimating Y

question 68

Multiple Choice

The accompanying table shows the regression results when estimating y = β₀ + β₁x + ε. Is x significantly related to y at the 5% significance level?

• A) Yes,because the p-value of 0.0745 is greater than 0.05.
• B) No,because the p-value of 0.0745 is greater than 0.05.
• C) Yes,because the slope coefficient of 1.417 is less than the test statistic of 2.25.
• D) No,because the slope coefficient of 1.417 is less than the test statistic of 2.25.

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Definitions:

Marginal Cost

The change in total cost that arises when the quantity produced is incremented by one unit.

Retained Earnings

Profits that a company has earned to date, less any dividends or other distributions paid to shareholders, used for reinvestment in the business or to pay down debt.

After-Tax Cost

The actual cost of an investment or loan after taking into account the effects of taxation on its returns or costs.

Semi-Annual Coupon Rate

The interest rate on a bond that pays out interest twice a year.