In: Statistics and Probability
18. If rS = .25, n = 25, set up an inferential proof with the 7 steps to test the significance of the correlation. (4 points)
H0 : The significant correlation does not exists between X and Y OR ρ = 0
Ha : The significant correlation exists between X and Y OR ρ ≠ 0
Test statistic : Given r = 0.25 , n = 25
t =
t =
t = 1.238
So | t | = 1.238
Critical value : We assume α = 0.05, and we have n = 25
degrees of freedom (d.f) = n-2 = 23
Using t distribution table , for α ( two tail ) =0.05 and d.f =23
Critical value = 2.069
Rejection region : Reject H0 if | t | ≥ 2.069
Decision rule : As | t | is less than critical value , we fail to reject H0
Conclusion : There is no significant correlation exists between the X and Y