THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

question 153

Multiple Choice

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
For a random sample of 263 professionals,the correlation between their age and their income was found to be 0.17.You are interested in testing the null hypothesis that there is no linear relationship between these two variables against the alternative that there is a positive relationship.
-What is the most accurate statement that can be made about the p-value for this test?

• A)p-value < 0.005
• B)p-value < 0.01
• C)p-value < 0.025
• D)p-value < 0.05

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Definitions:

Labor

The human effort (physical or mental) that is used in the production of goods and services.

Producer Surplus

The difference between the actual amount producers receive for a good and the minimum amount they would be willing to accept.

Firm

A business enterprise or establishment engaged in commercial, industrial, or professional activities.

Normal Good

A type of good for which demand increases when consumer income rises, and falls when consumer income decreases.