The correlation between two variables is -0.63 for a sample of 20 observations. We wish to show
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Question:
The correlation between two variables is -0.63 for a sample of 20 observations. We wish to show there is an inverse relationship between the two variables. Use the .05 significance level. Which of the following is a correct statement of the null hypothesis and the alternate hypothesis?
Multiple Choice
H0: rho <= 0 H1: rho > 0
H0: rho = 0 H1: rho > 0
H0: rho >= 0 H1: rho < 0
An inverse relationship would be a negative relationship. As X increases, Y decreases. As such the correct hypothesis should have the H1 with a less than (negative) symbol.
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