A Research Analyst Believes That a Positive Relationship Exists Between

question 7

Multiple Choice

A research analyst believes that a positive relationship exists between a firm's advertising expenditures and its sales. For 65 firms, she collects data on each firm's yearly advertising expenditures and its sales. She calculates a Spearman rank correlation coefficient of 0.45. Which of the following are the competing hypotheses to determine whether the Spearman rank correlation coefficient differs from the zero?

• A) H₀: ρ_s = 0; H_A: ρ_s ≠ 0
• B) H₀: ρ_s ≥ 0; H_A: ρ_s < 0
• C) H₀: ρ_s ≠ 0; H_A: ρ_s = 0
• D) H₀: ρ_s ≤ 0; H_A: ρ_s > 0