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Based on the output below from regression analysis performed to develop a model

ID: 3258646 • Letter: B

Question

Based on the output below 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 alpha = 0.05, what can be concluded? A. Whether or not a firm is Green is significant is predicting is PE ratio. B. That the regression coefficient associated with Growth Rate is not significantly different from zero. C. The Profit Margin is a significant variable in predicting a firm's PE ratio. D. That the regression coefficient associated with Profit Margin is significantly different from zero.

Explanation / Answer

Option A is correct because Green variabe is significant in predicting the PE ratio because it has p value of 0.023 which is close to 0

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