A company would like to examine the linear relationship between the age and cred

Question

A company would like to examine the linear relationship between the age and credit score of an individual. The following table shows the credit scores and ages of 5 randomly selected people. These data have a sample correlation coefficient rounded to three decimal places, of 0.823. Using this data and = 0.01, test if the population correlation coefficient between a person's age and credit score is different than zero. what conclusions can you draw? Age Credit score 3021 50 28 38 680 655 760 620 665 What are the correct null and alternative hypotheses? H1: p>0 H1 : =0 What is the test statistic? t | (Round to two decimal places as needed.) What is the p-value? p-value(Round to three decimal places as needed.)

Explanation / Answer

Solution:

Here,
the test hypothesis:
A) H0: p = 0
Ha: p 0

Using technology, we get the correlation,
  
r = 0.823026053
  
As t = r *sqrt [(n - 2) / (1 - r^2)], then, as n = 5,
= 0.823026053*sqrt[(5-2)/(1-0.823026053^2)]
  
t = 2.50970748 = 2.51

c) df = 3
  
Then, by table/technology, as this is two tailed,

P-value =0.0870

d) As P < 0.05,
  
REJECT H0. There is enough evidence from the sample to conclude that rho is NOT EQUAL to zero.

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.