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).
-Based on the F-statistic and associated P-value, we can conclude at α = 0.05 that
A) The regression equation is not significant.
B) All independent variables in the model are significant.
C) The regression model is significant overall.
D) None of the independent variables in the model are significant.
E) All independent variables in the model are significant, but the regression model is not significant overall.

Question

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). 
-Based on the F-statistic and associated P-value, we can conclude at α = 0.05 that
A) The regression equation is not significant. 
B) All independent variables in the model are significant. 
C) The regression model is significant overall. 
D) None of the independent variables in the model are significant. 
E) All independent variables in the model are significant, but the regression model is not significant overall.

Quizplus · Accepted Answer

The F-statistic and associated P-value are used to test the overall significance of the regression model. A low P-value (<0.05) indicates that the model is significant overall, which means that at least one of the independent variables is contributing significantly to the variation in the dependent variable (PE ratio) when controlling for the other variables in the model. Therefore, option C is the correct answer.

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