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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
What is the median for this problem (55+75+85+100+100)
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