A study of 20 worldwide financial institutions showed the correlation between their assets and pretax profit to be 0.86. 1. State the decision rule for 0.05 significance level: H0: ? ? 0; H1: ? > 0 (Round your answer to 3 decimal places.) Reject H0 if t > 2. Compute the value of the test statistic. (Round your answer to 2 decimal places.) Value of the test statistic
Added by Catherine L.
Close
Step 1
05 significance level with 20 financial institutions (n = 20). Since we are testing for a positive correlation, we will use a one-tailed test. The degrees of freedom (df) for the correlation coefficient test is n - 2, so in this case, df = 20 - 2 = 18. Using a Show more…
Show all steps
Your feedback will help us improve your experience
Supreeta N and 91 other Intro Stats / AP Statistics educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Key Concepts
Recommended Videos
A study of 28 worldwide financial institutions showed the correlation between their assets and pretax profit to be 0.89. a. State the decision rule for 0.050 significance level: H0: ρ ≤ 0; H1: ρ > 0. (Round your answer to 3 decimal places.) b. Compute the value of the test statistic. (Round your answer to 2 decimal places.)
Prabhakar K.
1. State the decision rule for 0.1 significance level: H0: ρ ≤ 0; H1: ρ > 0. (Round your answer to 3 decimal places.) Reject H0 if t > 2. Compute the value of the test statistic. (Round your answer to 2 decimal places.) Value of the test statistic 3. Can we conclude that the correlation in the population is greater than zero? Use the 0.100 significance level. H0. It is to conclude that there is positive association in the population between the two variables.
Shaiju T.
a. State the decision rule for 0.025 significance level: H0: ρ ≤ 0; H1: ρ > 0. (Round your answer to 3 decimal places.) Reject H0 if t > b. Compute the value of the test statistic. (Round your answer to 2 decimal places.) Value of the test statistic c. Can we conclude that the correlation in the population is greater than zero? Use the 0.025 significance level. H0. It is to conclude that there is positive association in the population between the two variables.
Rashmi S.
Recommended Textbooks
Elementary Statistics a Step by Step Approach
The Practice of Statistics for AP
Introductory Statistics
Transcript
18,000,000+
Students on Numerade
Trusted by students at 8,000+ universities
Watch the video solution with this free unlock.
EMAIL
PASSWORD