# The assignment is on Statistics explaining the analytical level of the question and also they are null hypothesis

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Statistical Assignment

Question#2

Find Degree of freedom?

Degree of freedom =2

Yes before applying any test I expect for null hypothesis of correlation population was zero.

The test statistic is 3.4193 so we can reject the null hypothesis of no correlation in the population at both the 0.05 and 0.01 levels.

Question#3

Because these are populated correlated for appropriate hypothesis test and also explain analytical level. 0.146 is the t value and also they are null hypothesis

QUESTION#4

Showed that the sample correlation between monthly return to us government bonds and monthly return 30 days T- bills was 0.119 from January 1926 through December 2002.

T= 0.1119√12-2/√1-0.1119 2

t = 0.36

The test statistic is 0.36 so we can reject the null hypothesis of no correlation in the population at both the 0.05 and 0.01 levels. They are relatively correlated coefficient can be signified different from zero.

Question#5

This relatively low correlated is another indicator that high yield bond return behaves more similarly to equity return than to debt returns.

30 days T-bills return have a very low correlation with all other return series in fact the correlation between T-bills return and other return series are lower than any of the other correlation in this table

U.S 30 days T-bills -0.0174 is the lowest correlation .they are also expected correlation.

Because the default premium for long term corporation less than 1 result change in required yield of the government bond and return between government and corporation.

Question#6

S&O 500 return is almost complete uncorrelated with 30 day t-bills return for this period. This is long term cooperate debit return are somewhat more correlated this is 0

.01 significant levels

Question#7

X= -0.3548

Y=0.002543

S&O 500 return is almost complete uncorrelated with 30 day t-bills return for this period. This is long term cooperate debit return are somewhat more correlated this is 0

.01 significant levels 