Data is collected on 15 adults to see if there is a correlation
between age and consumer spending. If r = 0.4, at the 0.10 level is
there a positive correlation between age and spending?
a. With a critical value of 0.945, p = 0.
b. With a critical value of 0.948, p < 0.
c. With a critical value of 0.951, p > 0.
d. With a critical value of 1.350, p > 0.
Solution:-
D) With critical value of t = 1.35, and p > 0
Null Hypothesis HO: The population correlation
coefficient is not significantly different from 0.(
)
Alternate Hypothesis HA: The population correlation
coefficient is significantly different from 0.()
Significance level = 0.10
Degree of freedoms:-
D.F = n - 2
D.F = 13
Test statistics:-
t = 1.574
p value for test = 0.07
Since p value(0.07) is greater than the significance value so we have to accept the null hypothesis.
From this we can conclude that there is not a significant positive relationship(correlation) between two variables.
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