× Didn't find what you were looking for? Ask a question
Top Posters
Since Sunday
j
3
s
3
j
2
J
2
e
2
n
2
t
2
d
2
b
2
t
2
J
2
b
2
New Topic  
jgosset2 jgosset2
wrote...
Posts: 62
Rep: 0 0
7 years ago
A study of 8 worldwide financial institutions showed the correlation between their assets and pretax profit to be .76.
 
1. State the decision rule for .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 3 decimal places.)
 
Value of the test statistic: 2.864
 
 
3. Can we conclude that the correlation in the population is greater than zero? Use the .010 significance level

Reject or do not reject H0?

It is reasonable to conclude that there is positive association in the population between assets and pretax profit?

Need help within the next hour please and thank you.
Read 154 times
1 Reply

Related Topics

Replies
wrote...
Educator
7 years ago
Hi there!

Welcome back, see if this works and respond back

First, let ? be the population correlation coefficient.

H0: ? = 0
H1: ? > 0

r = 0.75

t = r sqrt(n-2) / sqrt(1-r^2)

t = (0.75) sqrt(6) / sqrt(1- (0.75)^2)
t = 2.78

The critical t-value with 6 degrees of freedom and 1% level of significance is 2.158

Computed t = 2.78 > critical t of 2.158
Therefore, we reject the null hypothesis.
The correlation in the population is greater than zero.
New Topic      
Explore
Post your homework questions and get free online help from our incredible volunteers
  654 People Browsing
Related Images
  
 118
  
 372
  
 181
Your Opinion
Where do you get your textbooks?
Votes: 447

Previous poll results: How often do you eat-out per week?