Costco sells paperback books in their retail stores and wanted to examine the relationship between price and demand. The price of a particular novel was adjusted each week and the weekly sales were recorded in the table below.
Management would like to test if the population Spearman rank-order correlation coefficient is less than zero. Using
α = 0.05, which one of the following statements is true?
▸ Because the Spearman rank-order correlation coefficient is greater than the negative critical value, we can conclude that the population Spearman rank-order correlation coefficient is less than zero.
▸ Because the Spearman rank-order correlation coefficient is greater than the negative critical value, we cannot conclude that the population Spearman rank-order correlation coefficient is less than zero.
▸ Because the Spearman rank-order correlation coefficient is less than the negative critical value, we can conclude that the population Spearman rank-order correlation coefficient is less than zero.
▸ Because the Spearman rank-order correlation coefficient is less than the negative critical value, we cannot conclude that the population Spearman rank-order correlation coefficient is less than zero.
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