Q1. We are examining the relationship between the number of cold calls a broker makes and the number of accounts the firm as a whole opens. We have determined that the correlation coefficient is equal to 0.70, based on a sample of 16 observations. Is the relationship statistically significant at a 10% level of significance, why or why not? The relationship is: A) significant; the t-statistic exceeds the critical value by 3.67. B) not significant; the critical value exceeds the t-statistic by 1.91. C) significant; the t-statistic exceeds the critical value by 1.91.
Q2. A study of 40 men finds that their job satisfaction and marital satisfaction scores have a correlation coefficient of 0.52. At 5% level of significance, is the correlation coefficient significantly different from 0?
A) No, t = 1.68. B) Yes, t = 3.76. C) No, t = 2.02.
Q3. Suppose the covariance between Y and X is 0.03 and that the variance of Y is 0.04 and the variance of X is 0.12. The sample size is 30. Using a 5% level of significance, which of the following is most accurate? The null hypothesis of: A) no correlation is rejected. B) significant correlation is rejected. C) no correlation is not rejected.
Q4. Consider a sample of 60 observations on variables X and Y in which the correlation is 0.42. If the level of significance is 5%, we: A) cannot test the significance of the correlation with this information. B) conclude that there is statistically significant correlation between X and Y. C) conclude that there is no significant correlation between X and Y.
Q5. Consider a sample of 32 observations on variables X and Y in which the correlation is 0.30. If the level of significance is 5%, we: A) conclude that there is significant correlation between X and Y. B) conclude that there is no significant correlation between X and Y. C) cannot test the significance of the correlation with this information.
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