A research analyst believes that a positive relationship exists between a firm's advertising expenditures and its sales. For 65 firms, she collects data on each firm's yearly advertising expenditures and its sales. She calculates a Spearman rank correlation coefficient of 0.45. Which of the following are the competing hypotheses to determine whether the Spearman rank correlation coefficient differs from the zero? A) H₀: ρ_s = 0; H_A: ρ_s ≠ 0 B) H₀: ρ_s ≥ 0; H_A: ρ_s 0

Question

A research analyst believes that a positive relationship exists between a firm's advertising expenditures and its sales. For 65 firms, she collects data on each firm's yearly advertising expenditures and its sales. She calculates a Spearman rank correlation coefficient of 0.45. Which of the following are the competing hypotheses to determine whether the Spearman rank correlation coefficient differs from the zero? A) H₀: ρ_s = 0; H_A: ρ_s ≠ 0 B) H₀: ρ_s ≥ 0; H_A: ρ_s < 0 C) H₀: ρ_s ≠ 0; H_A: ρ_s = 0 D) H₀: ρ_s ≤ 0; H_A: ρ_s > 0

Quizplus · Accepted Answer

The correct hypothesis pair for testing if the Spearman rank correlation coefficient differs from zero is the null hypothesis (H0) stating that the correlation coefficient (ρ) equals zero, and the alternative hypothesis (Ha) stating that the correlation coefficient does not equal zero. This tests whether there is any statistically significant correlation between the variables.

A Research Analyst Believes That a Positive Relationship Exists Between