A study of 9 worldwide financial institutions showed the correlation between their assets and pretax profit to be 0.73.  1)State the decision rule for 0.010 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.)  3)Can we conclude that the correlation in the population is greater than zero? Use the 0.010 significance level.

Question
Asked Oct 2, 2019

A study of 9 worldwide financial institutions showed the correlation between their assets and pretax profit to be 0.73. 

 

1)State the decision rule for 0.010 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.)

 

 

3)Can we conclude that the correlation in the population is greater than zero? Use the 0.010 significance level.

 

check_circleExpert Solution
Step 1
Conduct a hybothes's eati
thas Qsti@n it required to
for Correlahion Colitont
help_outline

Image Transcriptionclose

Conduct a hybothes's eati thas Qsti@n it required to for Correlahion Colitont

fullscreen
Step 2
Pant A)
Decaion Rules
finding
Cri ca values, it TSV Jies in (T:cal region then rejict
the null hyo thess Gnd docan ies then fauil to reect the
null hyohe
the test 8tatistital Valu then (ompouing it wth
thesis
Jn-2
J-Y2
T S. V
tn-2
So Regt null hyotheis iTS.v > oto,7)
[.415
teo,3)
help_outline

Image Transcriptionclose

Pant A) Decaion Rules finding Cri ca values, it TSV Jies in (T:cal region then rejict the null hyo thess Gnd docan ies then fauil to reect the null hyohe the test 8tatistital Valu then (ompouing it wth thesis Jn-2 J-Y2 T S. V tn-2 So Regt null hyotheis iTS.v > oto,7) [.415 teo,3)

fullscreen
Step 3
Pant 2)
est 8tet HCel Valu )
T
n 2
1-Y2
O.73.9-2
J-0-732
2. 826
help_outline

Image Transcriptionclose

Pant 2) est 8tet HCel Valu ) T n 2 1-Y2 O.73.9-2 J-0-732 2. 826

fullscreen

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour*

See Solution
*Response times may vary by subject and question
Tagged in

Math

Statistics

Other

Related Statistics Q&A

Find answers to questions asked by student like you

Show more Q&A add
question_answer

Q: I need help figuring out how to solve this probability

A: The provided information is:The population size (N)=7Non-defective owns (k)=5Sample size (n)=4Consid...

question_answer

Q: X is a Normal (Gaussian) RV with  μ = − 1 , σ ^2= 16 . What is the probability that the value of X i...

A: The provided information is:X is a random variable follows normal distribution with mean -1 and vari...

question_answer

Q: In a tennis match, on a given point, the player who is serving has two chances to hit the ball in pl...

A: Let A be the event that there is fault in first serveTherefore, probability of fault in first serve ...

question_answer

Q: Suppose that E and F are events of a sample space, S. If Pr[E' nF = 0.2, Pr[F] = 0.4 and Pr[E' n F']...

A: Given Data

question_answer

Q: The problem is in the attached image!

A: The hypotheses for the test is given below.Null hypothesis:H0: p = 0.75Alternative hypothesis:H1: p ...

question_answer

Q: When a new machine is functioning properly, only 3% of the items produced are defective. Assume that...

A: We are given,Probability of defective = p =3% = 0.03             Randomly selected sample size = n =...

question_answer

Q: Suppose two players are playing a game and a fair die is rolled once to see who wins. **Leave all an...

A: Given a fair die,Number of players = 2Player 1 win if a even number is rolled.Total even numbers pos...

question_answer

Q: Suppose you want to test H0: m £ 100 against H1: m > 100 using a significance level of 0.05. The ...

A: We can answer only 1 question as per company guidelines. Since you have posted multiple questions, I...

question_answer

Q: If the average mid twenties male weighs 169lbs. and a weight of 150 is in the 31st. percentile, what...

A: We are given,Mean = μ = 169X = 150Percentile = 31st