Question:

A small retail business has determined that the correlation

Last updated: 8/10/2022

A small retail business has determined that the correlation

A small retail business has determined that the correlation coefficient between monthly expenses and profits for the past year, as measured at the end of each month, is r= 0.56. Assuming that both expenses and profits are approximately normally distributed, test at the 5% (0.05) level of significance the null hypothesis that there is no correlation between them.