Chartered Financial Analyst Level 1
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In a parametric test examining the correlation between two variables, given a sample size of 51 and a sample correlation of 0.6, the t-statistic is most likely:
A
0.07, which would result from incorrectly swapping the numerator and denominator in the formula.
B
5.25, calculated correctly using the formula for a parametric test of correlation.
C
6.64, arising from omitting the squaring of the correlation coefficient in the denominator.