Regression analysis was 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). Based on the F-statistic of 26.48 which has a p-value
Of 0.000, we can conclude at α = .05 that
A) the regression equation is not significant.
B) all independent variables in the model are significant.
C) the regression equation is significant.
D) none of the independent variables in the model are significant.
E) both B and C.

Question

Quizplus · Accepted Answer

The F-statistic and its associated p-value indicate the overall significance of the regression equation, and in this case, the results show that the regression equation is significant. Therefore, choice C is the correct answer.

Regression Analysis Was Performed to Develop a Model for Predicting