A study of the top 75 MBA programs attempted to predict the average starting salary (in $1000's) of graduates of the program based on the amount of tuition (in $1000's) charged by the program. We are told that the coefficient of correlation was calculated to be r = 0.7763. Use this information to calculate the test statistic that would be used to determine if a positive linear relationship exists between the two variables.
A) t = 10.52
B) t = 1.475
C) t = 1.760
D) t = 0.6027

Question

Quizplus · Accepted Answer

The test statistic for correlation is calculated using the formula t = r√((n-2)/(1-r²)), where r is the correlation coefficient and n is the sample size. With r = 0.7763 and n = 75, the calculation gives t ≈ 10.52.

A Study of the Top 75 MBA Programs Attempted to Predict