Given the Linear Correlation Coefficient R and the Sample Size $r = \pm 0.487$

question 18

Multiple Choice

Given the linear correlation coefficient r and the sample size n, determine the critical values of r and use your finding to state whether or not the given r represents a significant linear
Correlation. Use a significance level of 0.05.
R = 0.543, n = 25

• A) Critical values: \(r = \pm 0.487\), no significant linear correlation
• B) Critical values: \(r = \pm 0.396\), no significant linear correlation
• C) Critical values: \(r = \pm 0.487\), significant linear correlation
• D) Critical values: \(r = \pm 0.396\), significant linear correlation

---

Definitions:

Balanced Budget

A budget where revenues equal expenditures, resulting in no deficit or surplus.

New Classical View

An economic theory that emphasizes the importance of supply-side factors, rational expectations, and market-clearing prices.

Fiscal Policy

Government adjustment of its spending levels and tax rates to monitor and influence a nation's economy.

Government Spending

The total amount of public sector expenditure, including spending on infrastructure, healthcare, education, and defense by the government.