In: Statistics and Probability
| 
 x  | 
 14.1  | 
 24.3  | 
 30.2  | 
 38.3  | 
 51.3  | 
 20.5  | 
 22.7  | 
| 
 y  | 
 2.58  | 
 2.08  | 
 1.58  | 
 1.03  | 
 0.75  | 
 2.38  | 
 2.20  | 
Use a 1% level of significance to test the claim that ρ < 0. (I do need you to step through the five steps of hypothesis testing that we have been using in class. You can use SPSS to calculate r and as a check to what you find when you complete the hypothesis test).
The calculation for correraltion coefficient is as below


r= -51.228/
(940.894*2.927)=
-0.9762
The following needs to be tested:
H0:ρ=0
HA:ρ<0
where ρ corresponds to the population correlation.
The sample size is n=7, so then the number of degrees of freedom is
df = n−2=7−2=5
The corresponding critical correlation value rc for a significance level of α=0.01, for a left-tailed test is:
rc=−0.833 (from t-table at 0.01 significance level and df=5)
Observe that in this case, the null hypothesis H0:ρ=0 is rejected if r<rc=−0.833.
Based on the sample correlation provided, we have that r=−0.976<rc=−0.833, from which is concluded that the null hypothesis is rejected. Hence we have enough evidence to calim that the population correlation coefficient is less than 0 (i.e ρ<0).