A Random Sample of Two Variables,x and Y,produced the Following

question 68

Multiple Choice

A random sample of two variables,x and y,produced the following observations: Test to determine whether the population correlation coefficient is negative.Use a significance level of 0.05 for the hypothesis test.

• A)Because t = -4.152 < -1.9432,reject the null hypothesis.Because the null hypothesis is rejected,the sample data does support the hypothesis that there is a negative linear relationship between x and y.
• B)Because t = -4.152 < -1.9432,do not reject the null hypothesis.Because the null hypothesis is not rejected,the sample data support the hypothesis that there is a negative linear relationship between x and y.
• C)Because t = -9.895 < -1.9432,reject the null hypothesis.Because the null hypothesis is rejected,the sample data does support the hypothesis that there is a negative linear relationship between x and y.
• D)Because t = -9.895 < -1.9432,do not reject the null hypothesis.Because the null hypothesis is not rejected,the sample data support the hypothesis that there is a negative linear relationship between x and y.

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Definitions:

Elastic Demand

A market condition where the demand for a product or service significantly changes in response to changes in its price.

Long-Run

A period in which all factors of production and costs are variable, allowing companies the flexibility to make changes in production capacity and operations.

Few Substitutes

Refers to a market condition where there are not many alternative products or services available to consumers, which often leads to less competition and higher prices.

Inelastic Demand

A situation in which the demand for a product does not change much in response to price changes.