Page 9 - FINAL CFA II SLIDES JUNE 2019 DAY 2
P. 9
LOS 7.c: Formulate a test of the hypothesis that the
population correlation coefficient equals zero and MODULE 7.1: COVARIANCE & CORRELATION
determine whether the hypothesis is rejected at a given
level of significance.
8 • Fail to Reject Ho; or
• Conclude that the
correlation between X
& Y is not significantly
different from zero at
Ho: r = 0 versus Ha: r ≠ 0 @ df = n – 2 -2.306 +2.306 5% SL.
Meaning what?
Strong or
Weak r?
