Solutions of MA2612 Quiz 2

1 C

2 C

3 n = 30, r = 0.24, ρ0 = 0, α = 0.05.

H0 : ρ = 0, v.s. H1 : ρ 6= 0 .
Test statistic:
s
n−2
t∗ = (r − ρ0 ) = 1.31, (1)
(1 − r2 )(1 − ρ20 )
P+ = 0.1, (2)
P− = 0.9, (3)
p − value = 2min(P+ , P− ) = 0.2. (4)

Then we fail to reject H0 . We have sufficient evidence to conclude that there is

correlation between these two measures in the population at significance level 0.5.
SY 3
4 (Bonus:) β̂1 = r = 0.24 × = 0.48
SX 15