The business department at a small college wanted to compare the relative class

Question

The business department at a small college wanted to compare the relative class rank of the MBA graduates with their fifth-year salaries after graduation. The data collected by the department are presented in the following table. Compare the graduates’ class rank with their fifth-year salaries.

Relative Class Rank

Fifth-Year Salary

1

$89,110

2

$97,900

3

$85,150

4

$91,600

5

$81,000

6

$73,120

7

$81,600

8

$62,000

9

$76,000

Use SPSS to perform a two-tailed Spearman rank-order correlation with alpha = .05 to determine if a relationship exists between the two variables. (4 points)

Report your findings. (1 points)

Relative Class Rank

Fifth-Year Salary

1

$89,110

2

$97,900

3

$85,150

4

$91,600

5

$81,000

6

$73,120

7

$81,600

8

$62,000

9

$76,000

Explanation / Answer

Here i am not using the SPS, but i am doing it by hand.

di2 = 216

Spearman rank order correlation =  1 - 6 di2 /n(n2-1) = 1 - 6* 216/ (9 * 80) = -0.8

Here now we will check that if a relationship exists between two variables or not.

Here degree of freedom dF = 9 - 2 = 7

t = (-0.8) * sqrt [(9-2)/(1 - 0.82)] = -3.528

So here tcritical = t0.05,7 = 2.365

p - value = 0.01

Relative Class rank Fifth Year salary Rank(Salary) d d^2 1 89110 7 6 36 2 97900 9 7 49 3 85150 6 3 9 4 91600 8 4 16 5 81000 4 1 1 6 73120 2 4 16 7 81600 5 2 4 8 62000 1 7 49 9 76000 3 6 36 Sum 216

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