Financial Risk Manager Part 1
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In a dataset comprising 400 companies, the relationship between the total income of a company (Yi) and the average years of experience per employee (Xi) is represented by the following linear regression equation: Yi = β1 + β2*Xi + Ei, where i ranges from 1 to 400.
A researcher aims to test the joint null hypothesis that both β1 and β2 are equal to zero, using a 95% confidence level. The p-value associated with the t-statistic for β1 is 0.07, the p-value for the t-statistic for β2 is 0.06, and the p-value for the F-statistic for the overall model is 0.045.*
A
The analyst can reject the joint null hypothesis because each β is different from O at the 95% confidence level.
B
The analyst cannot reject the joint null hypothesis because neither β is different from O at the 95% confidence level.
C
The analyst can reject the joint null hypothesis because the F-statistic is significant at the 95% confidence level.
D
The analyst cannot reject the joint null hypothesis because the F-statistic is not significant at the 95% confidence level.