A bank is interested in determining whether its customers' checking balances are linearly related to their savings balances.A sample of n = 20 customers was selected and the correlation was calculated to be +0.40.If the bank is interested in testing to see whether there is a significant linear relationship between the two variables using a significance level of .05,the correct null and alternative hypotheses to test are:

Question

Quizplus · Accepted Answer

The null hypothesis would be that there is no significant linear relationship between the two variables, meaning the correlation coefficient is zero. The alternative hypothesis would be that there is a significant linear relationship, meaning the correlation coefficient is not zero. So the correct null and alternative hypotheses would be:
Ho: r = 0
Ha: r ≠ 0

A Bank Is Interested in Determining Whether Its Customers' Checking