Homework SourseA study of 16 worldwide financial institutions showed the co
A study of 16 worldwide financial institutions showed the correlation between their assets and pretax profit to be .77.
| 1. | State the decision rule for .050 significance level: H0: 0; H1: > 0 (Round your answer to 3 decimal places.) |
Solution
sol) :
1)Null hyp:H0: 0;
Alternative hyp: H1: > 0
Level:0.50
Reject H0 if t > 1.753 (15df at 0.05 level)
2) t statistic=
t =r /(sqrt[(1—r2)/(N—2)])
t=4.515
3) Conclusion:
t cal > t critical value at 0.05 level
Hence we reject the null hypothesis:
