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.
Correct Answer:

Verified
Correct Answer:
Verified
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