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:

Merchandise On Account

Purchasing goods from suppliers on credit, intending to pay at a later date, reflected in accounts payable.

Debits And Credits

The two facets of accounting entries; debits increase assets or decrease liabilities, while credits decrease assets or increase liabilities.

Subsidiary Ledgers

Detailed ledgers that contain information captured in the general ledger, broken down into specific categories like customers, suppliers, or assets.

Owner's Capital

The amount of money and other assets contributed by the owner(s) to a business, plus the retained earnings minus any withdrawals.