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Question 20 4 pts Based on the output below from regression analysis performed to develop a model for predicting a firm's Price-Earnings Ratio (PE) based
Question 20 4 pts 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), at alpha 0.05, what can be concluded? The regression equation is PE = 8.04 +0.757 Growth Rate + 0.0516 Profit Margin + 2.09 Green Predictor Coef SE Coef T P Constant 8.043 1.570 5.12 0.000 Growth Rate 0.7569 0.1355 5.59 0.000 Profit Margin 0.05162 0.03239 1.59 0.139 Green? 2.0900 0.7945 2.63 0.023 s = 1.12583 R-Sq = 87.8% Whether or not a firm is Green is significant in predicting its PE ratio. That the regression coefficient associated with Growth Rate is not significantly different from zero. That Profit Margin is a significant variable in predicting a firm's PE ratio. That the regression coefficient associated with Profit Margin is significantly different from zero
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