Over the Past 30 Years, the Sample Standard Deviations of the Rates

question 109

Multiple Choice

Over the past 30 years, the sample standard deviations of the rates of return for stock X and Stock Y were 0.20 and 0.12, respectively. The sample covariance between the returns of X and Y is 0.0096. To determine whether the correlation coefficient is significantly different from zero, the appropriate hypotheses are ________.

• A) H₀: μ = 0, H_A: μ ≠ 0
• B) H₀: ρ_xy = 0, H_A: ρ_xy ≠ 0
• C) H₀: μ = 1, H_A: μ ≠ 1
• D) H₀: ρ_xy = 1, H_A: ρ_xy ≠ 1

---

Definitions:

Evaluation Research

The systematic application of scientific methods to assess the implementation, processes, and outcomes of programs, aimed at measuring their effectiveness and impact.

Financial Accountability

The responsibility of individuals or organizations to manage funds in an efficient, transparent, and lawful manner, often requiring regular reporting and audit.

Problem of Reactance

A psychological phenomenon where individuals exhibit resistance or opposition to external pressures or attempts at persuasion, often resulting in a desire to restore threatened freedoms.

Recreational Activities

Activities undertaken for enjoyment, leisure, and relaxation, which can vary widely and include sports, crafts, and games.