Question: With reference to Exercise 11.1 on page 418, assume that x and y are random variables with a bivariate normal distribution. 1. Calculate r. 2.

With reference to Exercise 11.1 on page 418, assume that x and y are random variables with a bivariate normal distribution.

1. Calculate r.

2. Test the hypothesis that ρ = 0 against the alternative that ρ ≠ 0 at the 0.05 level of significance.

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