Testing the correlation between debts. In Exercise 16.53

Chapter , Problem 16.70

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Testing the correlation between debts. In Exercise 16.53 (page 16-41), we assessed the significance of the correlation between debt in 2009 and debt in 2010 for 33 countries by creating bootstrap confidence intervals. If a 95% confidence interval does not cover 0, the observed correlation is significantly different from 0 at the a 0.05 level. Lets do a test that provides a P-value. Carry out a permutation test and give the P-value. What do you conclude? Is your conclusion consistent with your work in Exercise 16.53 (page 16-41)? DE

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