Regression analysis was performed to develop a model for predicting a firm’s Pri
ID: 3323633 • Letter: R
Question
Regression analysis was performed to develop a model for predicting a firm’s Price-Earnings Ratio (PER) based on Growth Rate, Profit Margin, and whether or not the firm is Green (1 = Yes, 0 = No). Based on the F-statistic of 26.48 which has a p-value of 0.005, we can conclude at = .01 that
A)All independent variables in the model are significant and the regression equation is significant.
B)All independent variables in the model are significant.
C)The regression equation is not significant.
D)The regression equation is significant.
E)None of the independent variables in the model are significant.
Explanation / Answer
The p - value for the regression model is 0.005 which is less than 0.01, so this indicates that:
The regression equation is significant.
Option D is correct.