Question

Use the following data to answer the following questions. Do this by using SPSS. Make sure to show your output data as well as your responses to the following questions.

A. Compute the correlation between income and level of education.

B. Test for the significance of the correlation.

C. What argument can you make to support the conclusion that "lower levels of education cause low income"?

INCOME	LEVEL OF EDUCATION	INCOME	LEVEL OF EDUCATION
$45,675	1	$74,776	3
$34,214	2	$89,689	3
$67,765	3	$96,768	2
$67,654	3	$97,356	3
$56,543	2	$38,564	2
$67,865	1	$67,375	3
$78,656	3	$78,854	3
$45,786	2	$78,854	3
$87,598	3	$42,757	1
$88,656	3	$78,854	3

Answer 1

ANSWER:

Given that,

The SPSS Output is;

Correlations
		Income	Level of education
Income	Pearson Correlation	1	.629**
	Sig. (2-tailed)		.003
	N	20	20
Level of education	Pearson Correlation	.629**	1
	Sig. (2-tailed)	.003
	N	20	20
**. Correlation is significant at the 0.01 level (2-tailed).

A)

Correlation r= 0.629

B)

Calculated r= 0.629, P=0.003 which is < 0.05 level of significance. The null hypothesis is rejected.

There is significant linear correlation between income and level of education.

C)

The correlation is positive. Low income is associated with low levels of education.

Correlation does not imply causation. Cause and effect is not appropriate here. We are not supporting the conclusion that low levels of education cause low income.