Test the claim that the correlation between two variables is zero when a sample of 19 points has the correlation coefficient of 0.46. Test with alpha = 0.01.
Solution :
This is the two tailed test .
The null and alternative hypothesis is ,
H0 : = 0
Ha : 0
r = 0.46
n = 19
degrees of freedom = n - 2 =
Test statistic = t
=
= 0.46 * (17) / (1 - 0.462)
= 2.1336
Test statistic = 2.136
= 0.01
Critical value = 2.898
Test statistic < Critical value
Fail to reject the null hypothesis at the 1% level of significance .
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