When Testing Whether the Correlation Coefficient Differs from Zero, the Value

question 115

Multiple Choice

When testing whether the correlation coefficient differs from zero, the value of the test statistic is t₂₀ = 1.95 with a corresponding p-value of 0.0653. At the 5% significance level, can you conclude that the correlation coefficient differs from zero?

• A) Yes, since the p-value exceeds 0.05.
• B) Yes, since the test statistic value of 1.95 exceeds 0.05.
• C) No, since the p-value exceeds 0.05.
• D) No, since the test statistic value of 1.95 exceeds 0.05.

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Definitions:

Equilibrium Quantity

The quantity of goods or services supplied and demanded at the equilibrium price, where the quantity supplied equals the quantity demanded.

Illegal Activities

actions that are forbidden by law and subject to criminal penalties.

Missed Opportunities

Potential benefits or gains that are forfeited when a choice is made over alternative options.

Quota Rents

Revenue earned by the holder of import quotas, calculated by the difference between the domestic price and the world price of the imported goods.