A Bank Is Interested in Determining Whether Its Customers' Checking

question 14

True/False

A bank is interested in determining whether its customers' checking balances are linearly related to their savings balances.A sample of n = 20 customers was selected and the correlation was calculated to be +0.40.If the bank is interested in testing to see whether there is a significant linear relationship between the two variables using a significance level of .05,the correct null and alternative hypotheses to test are:
H₀ : r = 0.0
H_a : r ≠ 0.0

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Definitions:

Corporation

A legal entity that is separate and distinct from its owners, established to conduct business or engage in activities, with the ability to own assets, incur liabilities, and sell shares.

Certificate of Limited Partnership

A legal document filed with a state governmental body to form a limited partnership, outlining the rights and obligations of each partner.

Secretary of State

A high-ranking official in a state government responsible for maintaining public records and documents, among other duties, varying by country.

Limited Partner

An investor in a partnership who has limited liability to the extent of the amount of their investment and does not participate in the day-to-day management of the business.