The following table shows a portion of the annual returns (in percent) for two of Fidelity's mutual funds: the Fidelity Advisor's Electronic Fund and the Fidelity Advisor's Utilities Fund; the full data set is on the text website, labeled Electronics and Utilities,
a. Calculate and interpret the Spearman rank correlation coefficient rs.
b. Specify the competing hypotheses to determine whether the mutual fund returns are related.
c. At the 5% significance level, specify the critical value and the decision rule. Assume that the sampling distribution of rs is approximately normal.
d. What is the conclusion to the test? Are the returns correlated?