A Sample of N = 10,000 (X, Y) Pairs Resulted $H _ { o } : \rho = 0 \text { versus } H _ { \pm} : \rho \neq 0$

question 28

Essay

A sample of n = 10,000 (x, y) pairs resulted in r = .022. Test $H _ { o } : \rho = 0 \text { versus } H _ { \pm} : \rho \neq 0$ at level
.05. Is the result statistically significant? Comment on the practical significance of your analysis.

---

Definitions:

Price Falls

A situation where the market price of a good or service decreases due to factors such as increased supply or decreased demand.

Midpoint Formula

A method used in economics to calculate the elasticity of demand or supply by taking the average of the starting and ending prices and quantities.

Hot Dogs

A cooked sausage served in a sliced bun and often topped with condiments, considered a staple of American fast food.

Price Elasticity

The degree to which consumer demand for a merchandise shifts in response to its price alteration.