An Assumption for a Significance Test of the Correlation Coefficient

question 26

Multiple Choice

An assumption for a significance test of the correlation coefficient is that in the populations,

• A)the variance of each variable is the same.
• B)the variance of the deviation scores for each variable is the same.
• C)the variance of each variable is the same at each point of the other variable.
• D)the variance of the squared deviations of each variable is the same at each point of the distribution of the squared deviations of the other variable.

---

Definitions:

Average Propensity

The ratio of total consumption to total income, indicating how much income is spent rather than saved.

Save

Setting aside money or other resources for future use or in case of emergencies.

Consume

The action of using up goods or services, thus leading to a reduction in available quantity.

GDP

The entirety of value generated from goods and services within a country's borders throughout a specific duration sums up what is known as the Gross Domestic Product.