Question
Hi! Can you help me with the following question? Using the following information: John Martin has done research on the relationship between returns on the
Hi! Can you help me with the following question?
Using the following information: John Martin has done research on the relationship between returns on the Dow Jones Industrial Average and the Federal Funds interest rate to determine if there is any connection, either positive or negative, between these two series. Looking at 5 years of quarterly data (n=20) Martin has found that the correlation between these two series is equal to -0.765 and wants to know if this correlation is significant.
Determine whether this statistic is significant at the 0.01 significance level and whether Martin should reject the null or not. Show your work.
Thanks!
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