A Research Analyst Believes That a Positive Relationship Exists Between

question 87

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

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Definitions:

Annual Profit

The financial gain made by a business over the course of a year, calculated as total revenue minus total expenses.

Insurance Company

A business that provides coverage, in the form of compensation resulting from loss, damages, injury, treatment, or hardship in exchange for premium payments.

Standard Deviation

An indicator of the spread or diversity within a dataset, showing to what extent the individual numbers deviate from the dataset's average.

Independent

Referring to variables in a statistical model that are not influenced by other variables in the model, suggesting no association between them.