Posted: February 28th, 2017

Correlation coefficient – Is a statistical method using a number that describes the degree of a linear relationship between two assets…

Calaeryn, thank you for your substantive response to the discussion………………………………………………

You stated, “I was wondering about this, because it occurred to me that a researcher could easily change the significance level after they got the results of the sample evidence.”………………………………………………

Good point! First the hypothesis is formed about some population parameter of interest, and conclusions about the merits of the hypothesis are based on sample information. In this case, let’s suppose that the hypothesis has been formed using this parameter and that the hypothesis is considered to believe unless sufficient contrary evidence is produced. If the hypothesis is not true, then some alternative must be true (as you mentioned) therefore formulating an alternative hypothesis against which the null hypothesis is tested. 1) QUESTION: Whether the hypothesis is null or alternative if it specify a single value what is it saying about the hypothesis?MINIMUM 75 WORDS …………………………………………………………………………………….. Lisa, thank you for your substantive response to the discussion………………………….

You stated, “Correlation coefficient – Is a statistical method using a number that describes the degree of a linear relationship between two assets…”

This is true! Correlation coefficient is the measure of a linear relationship according to its strength and variables. Correlation analysis makes certain assumptions about the data and are necessary to test hypotheses about the coefficient.

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