A financial analyst is interested in the relationship between CEO compensation and company performance. The analyst collected data on 12 randomly selected, publicly traded companies. For each company, she looked at two variablest the percent change in stock price over the past five years and the percent change in CEO campensation over the past five years. For these 12 companies, the sample correlation coefficient r relating the two variables was 0.63. Using this information, test for a significant linear relationship between these two variables by doing a hypothesis test regarding the population correlation coefficient p. (Assume that the two variabies have a bivariate normal distribution.) Use the 0.10 level of significance; and perform a two-tailed test. Then complete the parts below. (If necessary, consult a list of formulas.)
State the null hypothesis H0 and the alternative hypothesis H1.