An economist wonders if the inflation rate is linearly correlated with the unemployment rate and is looking to use the results of their analysis for further study. They take a random sample of recent months and record the unemployment rate and inflation rate. They find and run a hypothesis test, getting a of . Interpret the value of and results of the test.
Table of contents
- 1. Intro to Stats and Collecting Data1h 14m
- 2. Describing Data with Tables and Graphs1h 55m
- 3. Describing Data Numerically2h 5m
- 4. Probability2h 16m
- 5. Binomial Distribution & Discrete Random Variables3h 6m
- 6. Normal Distribution and Continuous Random Variables2h 11m
- 7. Sampling Distributions & Confidence Intervals: Mean3h 23m
- Sampling Distribution of the Sample Mean and Central Limit Theorem19m
- Distribution of Sample Mean - Excel23m
- Introduction to Confidence Intervals15m
- Confidence Intervals for Population Mean1h 18m
- Determining the Minimum Sample Size Required12m
- Finding Probabilities and T Critical Values - Excel28m
- Confidence Intervals for Population Means - Excel25m
- 8. Sampling Distributions & Confidence Intervals: Proportion2h 10m
- 9. Hypothesis Testing for One Sample5h 9m
- Steps in Hypothesis Testing1h 6m
- Performing Hypothesis Tests: Means1h 4m
- Hypothesis Testing: Means - Excel42m
- Performing Hypothesis Tests: Proportions37m
- Hypothesis Testing: Proportions - Excel27m
- Performing Hypothesis Tests: Variance12m
- Critical Values and Rejection Regions28m
- Link Between Confidence Intervals and Hypothesis Testing12m
- Type I & Type II Errors17m
- 10. Hypothesis Testing for Two Samples5h 37m
- Two Proportions1h 13m
- Two Proportions Hypothesis Test - Excel28m
- Two Means - Unknown, Unequal Variance1h 3m
- Two Means - Unknown Variances Hypothesis Test - Excel12m
- Two Means - Unknown, Equal Variance15m
- Two Means - Unknown, Equal Variances Hypothesis Test - Excel9m
- Two Means - Known Variance12m
- Two Means - Sigma Known Hypothesis Test - Excel21m
- Two Means - Matched Pairs (Dependent Samples)42m
- Matched Pairs Hypothesis Test - Excel12m
- Two Variances and F Distribution29m
- Two Variances - Graphing Calculator16m
- 11. Correlation1h 24m
- 12. Regression3h 33m
- Linear Regression & Least Squares Method26m
- Residuals12m
- Coefficient of Determination12m
- Regression Line Equation and Coefficient of Determination - Excel8m
- Finding Residuals and Creating Residual Plots - Excel11m
- Inferences for Slope31m
- Enabling Data Analysis Toolpak1m
- Regression Readout of the Data Analysis Toolpak - Excel21m
- Prediction Intervals13m
- Prediction Intervals - Excel19m
- Multiple Regression - Excel29m
- Quadratic Regression15m
- Quadratic Regression - Excel10m
- 13. Chi-Square Tests & Goodness of Fit2h 21m
- 14. ANOVA2h 28m
11. Correlation
Hypothesis Tests for Correlation Coefficient Using TI-84
Struggling with Statistics?
Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
In a TI-84 correlation test (LinRegTTest), what does it mean for the correlation between and to be statistically significant at (e.g., )?
A
The test produces a p-value greater than , so you fail to reject and conclude there is evidence of a nonzero linear correlation.
B
The test produces a p-value less than , so you reject and conclude there is evidence of a nonzero linear correlation.
C
Statistical significance means the correlation is strong, specifically , in any dataset.
D
The correlation is statistically significant whenever the sample correlation satisfies , regardless of the sample size.
Verified step by step guidance1
Understand the hypotheses involved in the correlation test: The null hypothesis \(H_0\) states that the population correlation coefficient \(\rho = 0\), meaning no linear relationship between \(x\) and \(y\). The alternative hypothesis \(H_a\) states that \(\rho \neq 0\), indicating some linear correlation exists.
Recognize that the test calculates a p-value, which measures the probability of observing the sample data (or something more extreme) assuming the null hypothesis is true.
Compare the p-value to the significance level \(\alpha\) (e.g., 0.05). If the p-value is less than \(\alpha\), it means the observed correlation is unlikely to have occurred by random chance under \(H_0\).
When the p-value \(< \alpha\), reject the null hypothesis \(H_0: \rho = 0\) and conclude there is statistically significant evidence of a nonzero linear correlation between \(x\) and \(y\).
Note that statistical significance does not necessarily imply a strong correlation (e.g., \(|r| \geq 0.8\)); it means the correlation is unlikely to be zero given the data and sample size.
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