Exhibit 14-1

question 109

Multiple Choice

Exhibit 14-1.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. Refer to Exhibit 14-1.In order to determine whether the correlation coefficient is significantly different from zero,the appropriate hypotheses are:

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Definitions:

Mom and Pop Restaurants

Independent, family-owned eateries that often offer a unique, personal dining experience compared to chain restaurants.

Four-Firm Concentration Ratios

A measure used in economics to assess the level of market concentration and competition among the four largest firms in an industry.

Monopolistically Competitive Industries

Industries in which many firms offer products or services that are similar, but not perfect substitutes, allowing for significant differentiation and some degree of pricing power.

Minimum Wage

The lowest legal wage that employers can pay workers, aimed at protecting workers from unduly low pay.