In: Statistics and Probability
The test statistic: r = 0.741. Set alpha at .05.
b) What happens if alpha is set at .01? (Just interpret this result
– don’t do the 5 steps again.)
To Test :-
H0 :- ρ = 0
H1 :- ρ ≠ 0
r = 0.741
n=8
Test Statistic :-
Test Criteria :-
Reject null hypothesis if t > t(α/2,n-2) OR t <
-t(α/2,n-2)
For α = 0.05
critical value t(α/2,n-2) = t(0.05/2 , 8- 2 ) = ± 2.4469 ( From
t table )
t = 2.7029 > t(α/2,n-2)= 2.4469
Result :- We Reject null hypothesis at α=0.05
Decision based on P value and α = 0.05
P - value = P ( t > 2.7029 ) = 0.0177
Reject null hypothesis if P value < α = 0.05 level of
significance
P - value = 0.0177 < 0.05 ,hence we reject null
hypothesis
Conclusion :- We Reject H0
There is enough evidence agains H0 that is There is not statistically significant correlation coefficient between two variables.
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b) What happens if alpha is set at .01? (Just interpret this result – don’t do the 5 steps again.)
For α = 0.01
critical value t(α/2,n-2) = t(0.01/2 , 8 - 2 ) = ± 3.7074( From
t table )
-3.7074 < 2.7029 < 3.7074
Result :- We fail to Reject null hypothesis at α=0.01
Conclusion :- We Accept H0 at α=0.01
at α=0.01 There is not statistically significant
correlation coefficient between two variables.