A Shipping Company Believes There Is a Linear Association Between

question 2

Multiple Choice

A shipping company believes there is a linear association between the weight of packages shipped and the cost.The following table shows the weight (in pounds) and cost (in dollars) of the last seven packages shipped. Using the critical value approach and α = 0.10,the appropriate conclusion is _________.

• A) do not reject the null hypothesis;conclude weight and cost are correlated
• B) do not reject the null hypothesis;we cannot conclude the correlation coefficient is different from zero
• C) reject the null hypothesis;we cannot conclude the correlation coefficient is different from zero
• D) reject the null hypothesis;conclude weight and cost are correlated

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Definitions:

Unilateral Mistake

A mistake by one party to the agreement.

Innocent Misrepresentation

A false statement of a material fact made by a party that honestly believed the fact to be true.

Erroneous Statement

A declaration or assertion that is incorrect or mistaken in fact.

Consideration

Something of value given by all parties to a contract that induces them to enter into the agreement to exchange mutual performances.