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

question 12

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. When testing whether the correlation coefficient differs from zero, the value of the test statistic is t₂₈ = 2.31. At the 5% significance level, the critical value is t_0.025,28 = 2.048. The conclusion to the hypothesis test is ________.

• A) to reject H₀; we can conclude that the correlation coefficient differs from zero
• B) to reject H₀; we cannot conclude that the correlation coefficient differs from zero
• C) do not reject H₀; we can conclude that the correlation coefficient differs from zero
• D) do not reject H₀; we cannot conclude that the correlation coefficient differs from zero

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Definitions:

Blood Pressure Cuffs

A device used in conjunction with a sphygmomanometer to measure arterial blood pressure, typically consisting of an inflatable cuff to restrict blood flow.

Falsely Low

An inaccurately or misleadingly low measurement or reading.

Falsely High

A measurement or reading that indicates a higher value than the true value, which can occur due to technical errors or specific conditions affecting the test.

Nasogastric (NG) Tube

A flexible tube that is inserted through the nose into the stomach for feeding or medication administration.