A Researcher Collects Data from 20 People and Calculates a Pearson

question 66

Multiple Choice

A researcher collects data from 20 people and calculates a Pearson correlation of r = .72. Assuming $\alpha$ = .05 (two-tailed) , the researcher would make the decision to ______.

• A) reject the null hypothesis (p < .05)
• B) reject the null hypothesis (p < .01)
• C) not reject the null hypothesis (p > .05)
• D) not reject the null hypothesis (p < .05)

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Definitions:

Interest Rate Parity Theory

This theory suggests that the difference between the exchange rates of two currencies is equal to the ratio of the interest rates between those two countries, thereby preventing arbitrage opportunities.

Exchange Rates

The price of one country's currency expressed in another country's currency.

Equilibrium

A condition or state where supply equals demand, resulting in a stable market environment.

Currency Selection Return

The return attributed to the choice of currency in which investments are denominated.