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Which of the Following Is the Correct Interpretation for the Regression

Question 25

Multiple Choice

Which of the following is the correct interpretation for the regression coefficient of Green?


A) The regression coefficient indicates that the PE ratio of a firm that is green will, on average, be 2.09 points higher than a firm that is not green with the same profit growth rate and profit margin.
B) The regression coefficient indicates that the PE ratio of a firm that is green will, on average, be 2.09 points lower than a firm that is not green with the same profit growth rate and profit margin.
C) The regression coefficient indicates that the PE ratio of a firm that is green will, on average, be 2.09 points times higher than a firm that is not green.
D) The regression coefficient indicates that the PE ratio of a firm that is green will, on average, be 2.09 points times lower than a firm that is not green.
E) The regression coefficient is not significantly different from zero.

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