Question

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.

Answer 1

Solution:-

D) With critical value of t = 1.35, and p > 0

Null Hypothesis H_O: The population correlation coefficient is not significantly different from 0.( )

Alternate Hypothesis H_A: 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.