In studying the stock price movement and volume of a well known company, Mr. Allen believes that...

In studying the stock price movement and volume of a well
known company, Mr. Allen believes that there is a strong correlation between
the monthly volume and the change in the price of the company's stock. His
conjecture is that the change in volume and price move in the same direction.
He decides to test his idea using correlation analysis. Over a 24 month period
he compared the monthly volume and the stock prices. From this data he computed
r = 0.33.

(a). State H_{o} and H_{a}.

(b). Using a 1% significant level, would Mr. Allen
conclude that there is a strong correlation?