A Recent Study of 15 Shoppers Showed That the Correlation

question 59

Multiple Choice

A recent study of 15 shoppers showed that the correlation between the time spent in the store and the dollars spent was 0.235. Using a significance level equal to 0.05, which of the following is the test statistic for testing whether the true population correlation is equal to zero?

• A) t = 0.245
• B) t = 1.76
• C) t = 2.1604
• D) t = 0.872

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Definitions:

EPS

Earnings per share, a company's profit divided by its number of outstanding shares.

Intrinsic Value

The actual value of a company or an asset based on underlying perception of its true value including all aspects of the business, in terms of both tangible and intangible factors.

P/E Multiple

Price-to-Earnings ratio, a valuation metric calculated by dividing the current market price of a stock by its earnings per share, indicating how much investors are willing to pay per dollar of earnings.

EPS

Earnings Per Share; a company's profit divided by its number of common outstanding shares, indicating the company’s profitability.