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) , we can conclude (α = .05) 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 Profit Margin is significantly different from zero
Correct Answer:
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