Kenneth McCoin, CFA, is a fairly tough interviewer. Last year, he handed each job applicant a sheet
Question:
Regression Statistics
Multiple R.........................0.8623
R-squared..........................0.7436
Standard error.....................0.0213
Observations.........................24
Is the relationship between the ratio of cash flow to operations and the ratio of net income to sales significant at the 5 percent level?
A. No, because the R-squared is greater than 0.05.
B. No, because the p-values of the intercept and slope are less than 0.05.
C. Yes, because the p-values for F and t for the slope coefficient are less than 0.05.
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Related Book For
Quantitative Investment Analysis
ISBN: 978-1119104223
3rd edition
Authors: Richard A. DeFusco, Dennis W. McLeavey, Jerald E. Pinto, David E. Runkle
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