A Random Sample of Two Variables, X and Y, Produced

question 113

Multiple Choice

A random sample of two variables, x and y, produced the following observations: Test to determine whether the population correlation coefficient is negative. Use a significance level of 0.05 for the hypothesis test.

• A) Because t = -4.152 < -1.9432, reject the null hypothesis. Because the null hypothesis is rejected, the sample data does support the hypothesis that there is a negative linear relationship between x and y.
• B) Because t = -4.152 < -1.9432, do not reject the null hypothesis. Because the null hypothesis is not rejected, the sample data support the hypothesis that there is a negative linear relationship between x and y.
• C) Because t = -9.895 < -1.9432, reject the null hypothesis. Because the null hypothesis is rejected, the sample data does support the hypothesis that there is a negative linear relationship between x and y.
• D) Because t = -9.895 < -1.9432, do not reject the null hypothesis. Because the null hypothesis is not rejected, the sample data support the hypothesis that there is a negative linear relationship between x and y.

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Definitions:

Closing Costs

Costs that are paid at closing that include origination fees, attorney fees, points, prepaid interest, transfer tax, and title insurance.

Exponential Regression

A statistical method used for modeling the relationship between a dependent variable and an exponential function of an independent variable.

Rent Increases

The upward adjustment in rental charges, typically on an annual basis or at the renewal of a lease agreement.

Slope

The slope of a line is the numerical value for the inclination or declination of that line and is expressed as a ratio of the change in the vertical variable over the change in the horizontal variable from one point on the line to the next.