The Following Data for Five Years of the Annual Returns

question 55

Multiple Choice

The following data for five years of the annual returns for two of Vanguard's mutual funds, the Vanguard Energy Fund (x) and the Vanguard Healthcare Fund (y) , were given as s_x = 35.77, s_y = 13.34, s_xy = 447.68. The competing hypotheses are H₀: ρ_xy = 0, H_A: ρ_xy ≠ 0. At the 5% significance level, which of the following is the critical value of the test statistic?

• A) 2.353
• B) 2.571
• C) 2.776
• D) 3.182

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Definitions:

Production Possibilities Curve

A graph that shows the different quantities of two goods that an economy can produce using all of its resources efficiently.

Scarcity

Fundamental concept of economics that indicates that there is less of a good freely available than people would like.

Production Possibilities Curve

A graphical representation that shows the maximum combination of goods or services that can be produced with a fixed amount of resources.

Efficiently

Pertains to achieving maximum productivity with minimal wasted effort or expense.