A Research Analyst Believes That a Positive Relationship Exists Between

question 38

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. At the 5% confidence level, which of the following is the correct conclusion about the relationship between advertising and sales?

• A) Reject the null hypothesis; we cannot conclude advertising and sales are correlated.
• B) Do not reject the null hypothesis; we can conclude advertising and sales are correlated.
• C) Reject the null hypothesis; we can conclude advertising and sales are correlated.
• D) Do not reject the null hypothesis; we cannot conclude advertising and sales are correlated.

---

Definitions:

Economic Condition

The state of an economy at a given time, including factors such as growth rate, inflation, employment levels, and overall economic health.

Unemployment Rate

The percentage of the labor force that is jobless and actively seeking employment.

Income Inequality

The unequal distribution of income within a population, often measured by various statistical tools and indicative of economic disparity.

Multitasking

Refers to the ability to handle more than one task at the same time.