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Correlations Mean Std Mean Pearson Correlation 1 ,751 ** Sig. (2-tailed) ,000 N

ID: 3387380 • Letter: C

Question

Correlations

Mean

Std

Mean

Pearson Correlation

1

,751**

Sig. (2-tailed)

,000

N

50

50

Std

Pearson Correlation

,751**

1

Sig. (2-tailed)

,000

N

50

50

**. Correlation is significant at the 0.01 level (2-tailed).

The file Stock.sav contains data of mean and standard deviation of excess return of the S&P 50 stocks.

Examine the relation between the two variables graphically by using a scatter plot. Calculate the correlation between two variables.

a. Comment on the relationship. Is the relationship strong? Is it significantly different from 0? (Hint: a hypothesis test is needed for the latter part) alpha =0.05

Correlations

Mean

Std

Mean

Pearson Correlation

1

,751**

Sig. (2-tailed)

,000

N

50

50

Std

Pearson Correlation

,751**

1

Sig. (2-tailed)

,000

N

50

50

**. Correlation is significant at the 0.01 level (2-tailed).

Explanation / Answer

Based on given information, it is strong relation ship occurs bet ween the variables. and it is significnatly differ from 0.