Question

#rahulsingh6292 Please help me with this problem.... I want a detailed solution.... Please be as detailed as possible otherwise I'll report you

1. The following table shows tde sample correlations betwen the montuly seturms for four diffreen aee as follows 36 monály osevaos The f Fund 1 Lage-cap fund Fund2 Mid-cap fund Fund3 Large-cap value fund Fund 4 Emerging markets fund SæP 300 US domestic stock index Fund I Fund 2 Fund3 Fund 4 S&P 500 Fund t Fund 2 09231 Fund 3 0471 0.4156 1 Fund 4 07111 0.7238 0.3102 S&P 500 08277 0.8223 0.5791 0.7515 Test the null bypothesis that each of these correlations, edividually, is equal to zero against the ahemanve tepothresis thart in a not equal so zero. Use n 5 peromt signißcasce level 2. Julie Moon is an energy ana)yst examining electriciny, oil, and nstural gas consumpti w os in dafterest regions over differest seasons. She ran a regresson explainiag the 38, the explained varren wu 60.16, and the un spladed raranor 80-2 She hed 60 dcu n dot ace ble ual

Answer 1

Hello Sir/ Mam

The critical t-value for n − 2 = 34 df, using a 5 percent significance level and a two-tailed test, is 2.032. First, take the smallest correlation in the table, the correlation between Fund 3 and Fund 4, and see if it is significantly different from zero. Its calculated t-value is

-20.3102 3621.903 -0310 . = 1

This correlation is not significantly different from zero. If we take the next lowest correlation, between Fund 2 and Fund 3, this correlation of 0.4156 has a calculated t-value of 2.664. So this correlation is significantly different from zero at the 5 percent level of significance. All of the other correlations in the table (besides the 0.3102) are greater than 0.4156, so they too are significantly different from zero.

I hope this solves your doubt.

Feel free to comment if you still have any query or need something else. I'll help asap.

Do give a thumbs up if you find this helpful.