SOLUTION: A random sample of 15 homes that recently sold is obtained. The correlation between the area of the home, in square feet, and the selling price is 0.40. We want to test the null hy

Question 745409: A random sample of 15 homes that recently sold is obtained. The correlation between the area of the home, in square feet, and the selling price is 0.40. We want to test the null hypothesis that the correlation in the population is less than or equal to zero versus the alternate that it is greater than zero. The rejection region will fall in the _________ tail of a t distribution.
A)Upper
B)Lower
C)Cannot be determined
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
A random sample of 15 homes that recently sold is obtained. The correlation between the area of the home, in square feet, and the selling price is 0.40. We want to test the null hypothesis that the correlation in the population is less than or equal to zero versus the alternate that it is greater than zero. The rejection region will fall in the Lower tail of a t distribution.
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You are asked to test "less than or equal to zero", so
Ho: u <= 0.4 because "=" must always be in Ho.
Ha: u < 0.4
---
Ha ALWAYS determines where the rejection interval(s) are.
Since it states u < 0.4 the reject interval is a left tail.
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Cheers,
Stan H.
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A)Upper
B)Lower
C)Cannot be determined

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