Over the Past 30 Years,the Sample Standard Deviations of the Rates

question 65

Multiple Choice

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.When testing whether the correlation coefficient differs from zero,the value of the test statistic is t₂₈ = 2.31.At the 5% significance level,the critical value is t_0.025,28 = 2.048.The conclusion to the hypothesis test is to ___________.

• A) to reject H₀;we can conclude that the correlation coefficient differs from zero.
• B) to reject H₀;we cannot conclude that the correlation coefficient differs from zero.
• C) do not reject H₀;we can conclude that the correlation coefficient differs from zero.
• D) do not reject H₀;we cannot conclude that the correlation coefficient differs from zero.

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Definitions:

Sensory Adaptation

The process by which sensory receptors become less sensitive to constant stimuli, allowing focus on changes in the environment.

Ruffini End Organs

Sensory receptors located in the skin and joints that detect stretch, pressure, and heat, contributing to the sense of body position and motion.

Mechanoreceptors

Specialized sensory receptors responsible for sensing mechanical pressure or distortion, playing a crucial role in touch and sound perception.

Lower Motor Neurons

Neurons located in the spinal cord or brainstem that innervate skeletal muscles, responsible for movement and muscle tone.