I a T Test Is Used to Test the Significance

question 98

Multiple Choice

i. A t test is used to test the significance of the coefficient of correlation.
ii. When testing the strength of the relationship between two variables, the alternate hypothesis is:
H0: ρ ≠ 0.
iii. Suppose a sample of 15 homes recently sold in your area is obtained. The correlation between
The area of the home, in square feet, and the selling price is 0.40. We want to test the hypothesis
That the correlation in the population is zero versus the alternate that it is greater than zero. You
Determine that the rejection region should fall in the lower tail if this is a one-tailed test and we use
A 0) 01 significance level.

• A) (i), (ii), and (iii) are all correct statements.
• B) (i) and (ii) are correct statements but not (iii).
• C) (i) and (iii) are correct statements but not (ii).
• D) (ii) and (iii) are correct statements but not (i).
• E) (i), (ii), and (iii) are all false statements.

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Definitions:

Substantially Impair

To significantly weaken or reduce the ability, value, or function of something.

Reject

To refuse to accept, submit to, believe, or make use of something.

Perfect Tender Rule

Requirement that the seller deliver the goods in conformity with the contract, down to the last detail.

Local

Pertaining to or occurring in a particular area, community, or jurisdiction, not widespread or general.