Concurrent deviation method, Mathematics

Concurrent Deviation Method

AIM:

            To test relationship between current ratio and return on total assets of X Ltd for the period 2006-11.

NULL HYPOTHESIS (H0):

            There is no significant relationship between current ratio and return on total assets of X ltd for the period 2006-11.

ALTERNATIVE HYPOTHESIS (H1):

            There is no significant relationship between current ratio and return on total assets of X  ltd for the period 2006-11.

YEARS

CURRENT RATIO (X)

DX

RETURN ON TOTAL ASSETS( Y)

DY

DXDY

2005-06

5.01

 

7.02

 

 

2006-07

3.27

-

5.02

-

+

2007-08

3.21

-

7.80

+

-

2008-09

2.65

-

4.88

-

+

2009-10

2.56

-

7.17

+

-

2010-11

3.04

+

9.6

+

+

Total

 

 

 

 

C=3

 

 

 

 

 

 

TABLE NO: 4.2.2 Calculation of correlation co-efficient between current ratio and return on total assets of X Ltd for the Period 2005-11

Concurrent deviation method :

Rc  = ±√±(2C-n)/n

Rc  =  ±√±(2(3)-5)/5

Rc  =  ±√±.2

Rc  =  +0.45

Student's t-distribution:

t   =         r        X      √(n - 2)

         √(1-(r2 ))

t = 0.45/√ (1-(0.45)2 * √ 6-2

t= 1.008

Degree of freedom(dof)        =     n-2

                                             =      6-2

                                             =       4

Level of significance              =      5%

Table value(t4 0.05)              =      2.571

Result:

Since the calculated value of t(1.008) is less than the table value of t(2.571) m, the Null hypothesis is accepted .

Decision:

There is no significant difference between current ratio and return on total assets of X ltd for the period 2006-10.

Posted Date: 2/25/2013 7:50:40 AM | Location : United States







Related Discussions:- Concurrent deviation method, Assignment Help, Ask Question on Concurrent deviation method, Get Answer, Expert's Help, Concurrent deviation method Discussions

Write discussion on Concurrent deviation method
Your posts are moderated
Related Questions
the mass of a container is 5.81kg when full with sugar .the mass of container is 3.8kg when 3/8 of the sugar is removed.what is the mass of empty container

Consider R be a relation from A to B, that is, take R A Χ B. Then Domain R = {a: a € A, (a, b) € R for any b € B} i.e. domain of R is the set of all the first components of

how will the decimal point move when 245.398 is multiplied by 10

Jake required to find out the perimeter of an equilateral triangle whose sides measure x + 4 cm each. Jake realized that he could multiply 3 (x + 4) = 3x + 12 to find out the total

Finite Population Correction Factor Or Fpcf) If a specified population is relatively of small size and sample size is more than 5 percent of the population then the standard er

can you help me with entrance exam for university ? i really need help so quick

On dividing the polynomial 4x 4 - 5x 3 - 39x 2 - 46x - 2 by the polynomial g(x) the quotient is x 2 - 3x - 5 and the remainder is -5x + 8.Find the polynomial g(x). (Ans:4 x 2 +

A car travels 283 1/km in 4 2/3 hours .How far does it go in 1 hour?

The curve (y+1) 2 =x 2 passes by the points (1, 0) and (- 1, 0). Does Rolle's Theorem clarify the conclusion that  dy dx  vanishes for some value of x in the interval -1≤x≤1?

How do you traverse a Binary Tree?  Describe Preorder, Inorder and Postorder traversals with example.     Ans: Traversal of tree means tree searching for a aim. The aim may be