Karls pearsons co-efficient of correlation, Mathematics

Aim:

To test the significant relationship between the accounting ratios of operating management and standard ideal ratios.

Null Hypothesis(H0) :

There is no significant relationship between the accounting ratios of operating management and standard ideal ratios.

Alternative Hypothesis(H1) :

 There is a significant relationship between the accounting ratios of operating management and standard ideal ratios.

Table: Calculation of correlation co-efficient between the accounting ratios of operating management and standard ideal ratios of X  ltd.

Financial accounting ratios

Karl's Pearson's co-efficient of correlation

Calculated value(t)

Table value

Significant/Not significant

Fixed assets turnover ratio

0.75

2.27

 

 

Return on investment

 

 

 

 

Gross profit ratio

 

 

 

 

Return on total assets

 

 

 

 

Return on networth

 

 

 

 

Return on net assets

 

 

 

 

 

Posted Date: 2/25/2013 7:52:29 AM | Location : United States







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