Chapter 11.4, Problem 14P

(a)

To determine

To explain: If $\beta$ is significant then $\rho$ is significant.

(b)

To determine

The sample test statistic t for r is same as the corresponding test statistic for b. Whether $\rho$ is positive, $\beta$ is also positiveat the same level of significance and whether $\rho$ is not significant, $\beta$ is also not significantat the same level of significance.