Question

Is it more difficult to establish linear correlation at the .01 or the .05 significance level? Please explain why.

Answer 1

We consider the following table :

We can see that critical value for correlation coefficient is higher for = 0.01 as compared to = 0.05 for a particular sample size 'n' . Therefore, it will take a higher value for correlation to be significant in case of = 0.01

Since, at = 0.01 , we are taking less error as compared to = 0.05 and therefore, the significance of linear correlation is difficult to establish.