Ten Pairs of Points Yielded a Correlation Coefficient of 0.790

question 8

Multiple Choice

Ten pairs of points yielded a correlation coefficient of 0.790. If , which of the following statements is correct if ? (Do not calculate a t-value.)

• A) Because 0.790 is greater than 0.632, the null hypothesis is not rejected.
• B) Because 0.790 is greater than 0.632, the null hypothesis is rejected.
• C) Because 0.790 is greater than 0.602, the null hypothesis is not rejected.
• D) There is no correlation between the variables.

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Definitions:

Long Run

The time period in which all factors of production can be varied, but technology remains constant.

Product Differentiation

A marketing strategy that businesses use to distinguish their product from similar offerings in the market, through variations in quality, features, style, or branding.

Monopolistically Competitive

A market structure where many firms sell products that are similar but not identical, allowing for product differentiation and some price control.

Elasticity

A measure of how much the quantity demanded or supplied of a good responds to a change in one of its determinants, such as price.