Tiêu đề 1.09 Parametric and Non-Parametric Tests of Independence.pdf ✅

1.09 Parametric and Non-Parametric Tests of Independence Question 1 An investor tests the relationship between the monthly returns of two mutual funds with the null hypothesis that the funds' returns are uncorrelated. After analyzing 51 months of data, the investor believes that the distributions deviate from a normal distribution and calculates a Pearson correlation of 0.7894 and a Spearman correlation of 0.7311. If the critical t-value at a 5% significance level is 2.010, the most appropriate decision is to: A. fail to reject the null hypothesis. B. reject the null hypotheses since the t-statistic is close to 7.50. C. reject the null hypotheses since the t-statistic is close to 9.00. Question 2 An analyst selects 190 stocks and organizes them by style and market cap in a contingency table: Using marginal frequencies, the expected frequency of large-cap growth stock is closest to: A. 26.3 B. 34.2 C. 50.0 Question 3 An analyst studies the relationship between company size and bond rating to predict bond defaults. The following table represents the number of defaults over a 10-year period: Based on this information, the relative frequency of BBB–BB bond defaults by mid-cap companies, based on all mid-cap company bonds, is closest to: