Estimated regression equation

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Suppose you are given the following estimated regression equation: Debt Ratio = 4000 + .20 Cash Flow. If the t-stat for the slope estimate is 3.25, what can you conclude?

a) That only cash flow above 3.25 impacts debt.

b) That cash flow definitely has no impact on debt.

c) That cash flow clearly increases debt.

d) That cash flow quite possibly has no impact on debt.

Reference no: EM13102930

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