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:

Continuity

The state of remaining consistent, unchanged, or uninterrupted over time.

Entity

An organization, company, or individual that has a distinct legal existence and can enter into legal contracts or be subject to legal rights and obligations.

Aggregate

Aggregate refers to a total amount or sum formed by combining several separate elements or components.

Limited Partner

A partner who does not take part in the management of a firm and whose liability does not extend beyond his or her investment.