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A study was conducted to determine if husbands and wives like the same TV shows. Married couples ranked 15 TV shows, and the Spearman rank correlation coefficient was found to be rs = 0.47.
A) Specify the competing hypotheses to determine if there is a positive correlation between the two rankings.
B) Assuming the Spearman rank correlation coefficient follows a normal distribution, what are the mean and standard deviation of the normal distribution?
C) Assuming the Spearman rank correlation coefficient follows a normal distribution, what is the value of the test statistic?
D) At the 5% significance level, what is the decision and conclusion?
Break-Even Point
The point at which total costs equal total revenue, meaning the business does not make a profit or loss.
Degree of Operating Leverage
A financial metric that measures the sensitivity of a company's operating income to its sales, indicating the proportion of fixed to variable costs.
Variable Expenses
Expenses that vary directly with the level of production or sales volume, such as raw materials and direct labor.
Fixed Expenses
Costs that remain constant over a specified period regardless of changes in the level of activity or volume of production.
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