In: Statistics and Probability
provide the following: Sr, t statistic, critical t value, and the statistical decision regarding
H0: ρ= 0
r= .17, n= 62, α= .01, two-tailed test
Solution:
From given information , the hypothesis can be written as ,
H0 : = 0 vs H1 : 0
n = 62
r = 0.17
α= .01
The test statistic is given by
t =
=
= 1.336
Test statistic t = 1.336
Now , df = n - 2 = 62 - 2 = 60
α= 0.01
α/2 = 0.005
Given that , Two tailed test
So , there are two critical values.
= t0.005,60 = 2.660
Critical values are -2.660 and 2.660
Rejection region : t < -2.660 or t > 2.660
Our test statistic t = 1.336
It does not fall in rejection region.
So ,
Do not reject the null hypothesis H0
There is no evidence to conclude that there is significant correlation between two variables.