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 = 0.6027
B)t = 10.52
C)t = 1.475
D)t = 1.760

Question

Quizplus · Accepted Answer

The test statistic for determining if a positive linear relationship exists between two variables, given the coefficient of correlation (r), can be calculated using the formula $t = \frac{r\sqrt{n-2}}{\sqrt{1-r^2}}$, where $n$ is the number of pairs of data. Given $r = 0.7763$ and assuming $n = 75$ (since it's a study of the top 75 MBA programs), the calculation would yield a value that closely matches choice B, indicating a significant positive linear relationship.

A Study of the Top 75 MBA Programs Attempted to Predict