Karls pearsons co-efficient of correlation, Mathematics

Assignment Help:

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

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