THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
For a random sample of 263 professionals,the correlation between their age and their income was found to be 0.17.You are interested in testing the null hypothesis that there is no linear relationship between these two variables against the alternative that there is a positive relationship.
-What is the value of the test statistic?
A)3.669
B)2.756
C)2.787
D)6.785

Question

Quizplus · Accepted Answer

The test statistic for testing the significance of a correlation coefficient is calculated using the formula: t = r√((n-2)/(1-r²)), where r is the correlation coefficient and n is the sample size. Plugging in the values: t = 0.17√((263-2)/(1-0.17²)) ≈ 2.787.