For Questions Below, Use the Following: a Group of 8

question 40

Short Answer

For questions below, use the following: A group of 8 elementary school students was randomly selected . Each pupil was tested on both Math Ability and Spelling Ability. Their scores were: $$\begin{array} { c c c } \text { Subject } & \text { Math Test } & \text { Spelling Test } \\1 & 14 & 15 \\2 & 12 & 10 \\3 & 3 & 2 \\4 & 9 & 10 \\5 & 8 & 7 \\6 & 5 & 6 \\7 & 10 & 9 \\8 & 2 & 4\end{array}$$
-Find the Pearson r correlation between the Math and Spelling scores.

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Definitions:

Clientele Effect

The theory suggesting that changes in dividend policy can attract or repel specific groups of investors, affecting the stock price.

Dividends

Disbursements issued by a company to its shareholders, representing a share of the earnings distributed to its stock owners.

Residual

The amount remaining after the principal parts have been taken away or used up, often used in financial contexts.

Dividend Aversion

A theoretical behavior where investors prefer companies that retain earnings over those that pay out dividends, possibly due to tax advantages.