Testing To See If There Is Evidence Of A Correlation

Testing to see if there is evidence that a correlation between height and salary is significant

Testing to see if there is evidence that a correlation between height and salary is significant

Given the nature of the assignment, the core task is to perform hypothesis testing to determine whether the correlation between height and salary is statistically significant—that is, whether it differs from zero. The question specifies to show steps leading to the answer 4.46, implying that the calculation involves a t-statistic or similar measure used in hypothesis testing for correlation coefficients. The instructions also request repeating this process for specific numerical results, notably 4.46, 4.102, 4.158, and 4.136, although only the calculation for 4.46 is explicitly asked to be fully demonstrated.

Hypothesis testing for correlation involves formulating the null hypothesis (H₀) that the population correlation coefficient (ρ) equals zero (no correlation) against the alternative hypothesis (H₁) that ρ is not zero (there is a significant correlation). The steps include calculating the test statistic, which is often based on the sample correlation coefficient (r), the sample size (n), and then comparing this value against critical values from the t-distribution or computing a p-value to determine significance.

Paper For Above instruction

To assess whether there is a statistically significant correlation between height and salary, the appropriate hypothesis test involves calculating the test statistic for the correlation coefficient. The null hypothesis stipulates that there is no correlation (ρ = 0), and the alternative suggests that a correlation exists (ρ ≠ 0).

The general steps for performing this hypothesis test are as follows:

  1. Calculate the sample correlation coefficient (r): using data collected on height and salary from the sample population.
  2. Determine the sample size (n): number of paired observations used in calculating r.
  3. Compute the test statistic (t): using the formula:

    t = r * √(n - 2) / √(1 - r²)

    where r is the sample correlation coefficient, and n is the sample size.

  4. Decide on significance level (α): (commonly 0.05) for the test to determine the critical value from the t-distribution with (n - 2) degrees of freedom.
  5. Compare the calculated t value to critical t-value: or compute the p-value for the observed t.

In this scenario, the answer 4.46 seems to be a t-statistic corresponding to the correlation test result. To produce such a value aligns with a high sample correlation coefficient, given a certain sample size. For instance, if the sample size is sufficiently large, a t-value of approximately 4.46 would strongly suggest rejection of the null hypothesis, indicating a significant correlation between height and salary.

Suppose, for demonstration purposes, the sample size n is 30, and the calculated t-value is 4.46. We can back-calculate the correlation coefficient r as follows:

r = t / √(n - 2 + t²)

Substituting the values:

r = 4.46 / √(30 - 2 + 4.46²) = 4.46 / √(28 + 19.89) = 4.46 / √47.89 ≈ 4.46 / 6.92 ≈ 0.64

Thus, a correlation coefficient r of approximately 0.64 would correspond to a t-value of 4.46 with n=30. This indicates a moderate to strong positive correlation, which, given the degrees of freedom, is statistically significant, supporting the alternative hypothesis that the correlation is different from zero.

This process can be repeated with other t-values such as 4.102, 4.158, and 4.136, adjusting for different sample sizes or correlation coefficients accordingly. The key steps remain: compute t from r and n, compare with the critical t-value, and determine significance based on p-value or critical threshold.

References

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