The Following Data for Five Years of the Annual Returns

question 104

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. Which of the following is the value of the test statistic?

• A) 7.47
• B) 5.74
• C) 4.77
• D) 4.27

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Definitions:

Bank Draft

A payment instrument issued by a bank on behalf of its customer, directing the payment of a certain amount to a named individual or entity.

Certified Check

A check guaranteed by a bank, confirming that the drawer has enough funds to cover the amount.

Drawer

In financial terms, the party that writes or issues a check or draft instructing a payment to be made.

Rebate Check

A refund or discount on products or services, often sent to consumers in the form of a check after a purchase.