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(a) Suppose \(n=6\) and the sample correlation coefficient is \(r=0.90 .\) Is \(r\) significant at the \(1 \%\) level of significance (based on a two-tailed test)? (b) Suppose \(n=10\) and the sample correlation coefficient is \(r=0.90 .\) Is \(r\) significant at the \(1 \%\) level of significance (based on a two-tailed test)? (c) Explain why the test results of parts (a) and (b) are different even though the sample correlation coefficient \(r=0.90\) is the same in both parts. Does it appear that sample size plays an important role in determining the significance of a correlation coefficient? Explain.

Short Answer

Expert verified
In both cases, the correlation is significant, but sample size affects reliability and critical value thresholds.

Step by step solution

01

Understanding the Problem

We need to determine if the sample correlation coefficient \( r = 0.90 \) is significant at a 1% level of significance with different sample sizes \( n = 6 \) and \( n = 10 \). This involves conducting a hypothesis test for the correlation coefficient.
02

Determine Critical Value for a Two-Tailed Test

For a two-tailed test at a 1% level of significance, we use statistical tables such as the t-distribution table to find the critical t-value. The degrees of freedom in correlation testing is \( n - 2 \). For part (a), degrees of freedom = 4 and for part (b), degrees of freedom = 8.
03

Calculate t-test Statistic for Part (a)

The t-test statistic for the correlation coefficient is calculated using:\[t = r \sqrt{\frac{n-2}{1-r^2}}\]For part (a): \[t = 0.90 \sqrt{\frac{6-2}{1-0.81}} = 0.90 \sqrt{\frac{4}{0.19}} \approx 4.90\]
04

Compare t-statistic with Critical Value for Part (a)

With \( t = 4.90 \), check a t-distribution table with 4 degrees of freedom at the 1% significance level for a two-tailed test. The critical t-value is approximately 4.604. Since \( 4.90 > 4.604 \), the correlation is significant.
05

Calculate t-test Statistic for Part (b)

Using the same formula, for part (b):\[t = 0.90 \sqrt{\frac{10-2}{1-0.81}} = 0.90 \sqrt{\frac{8}{0.19}} \approx 7.55\]
06

Compare t-statistic with Critical Value for Part (b)

With \( t = 7.55 \), check a t-distribution table with 8 degrees of freedom at the 1% significance level for a two-tailed test. The critical t-value is approximately 3.355. Since \( 7.55 > 3.355 \), the correlation is significant.
07

Analyze the Effect of Sample Size

The difference in results is not in terms of significance; both tests show significant results. However, the test statistic and critical values are affected by sample size and degrees of freedom. Larger sample sizes provide more reliable results, and critical t-values decrease, making it easier to achieve significance. Thus, sample size plays a crucial role in determining the significance of a correlation coefficient.

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Key Concepts

These are the key concepts you need to understand to accurately answer the question.

Hypothesis Testing
In statistics, hypothesis testing is a method used to determine whether there is enough statistical evidence in a sample to infer that a certain condition is true for the entire population. It starts with formulating two hypotheses: the null hypothesis ( **H鈧**), which assumes there is no effect or difference, and the alternative hypothesis (**H鈧**), which suggests there is an effect or difference. The objective is to assess the strength of the evidence against the null hypothesis. Once the hypotheses are set, the test involves calculating a test statistic from the sample data, which is then compared to a critical value determined by the chosen significance level. The significance level, often denoted by **伪**, is the probability of rejecting the null hypothesis when it is true (a Type I error). If the test statistic exceeds the critical value, the null hypothesis is rejected, providing support for the alternative hypothesis. It's a powerful way to make informed conclusions based on data.
Correlation Coefficient
The correlation coefficient, typically denoted by **r**, measures the strength and direction of a linear relationship between two variables. Its value ranges from **-1** to **1**. A coefficient of **1** implies a perfect positive correlation, meaning as one variable increases, so does the other. A coefficient of **-1** indicates a perfect negative correlation where one variable increases as the other decreases. A value of **0** signifies no linear correlation. When conducting hypothesis tests on correlation coefficients, it's important to assess whether the observed correlation could have occurred by chance. Thus, a hypothesis test can tell us if **r** is significantly different from zero. This is particularly helpful in determining the strength of linear relationships between variables in multiple contexts, such as in psychology, economics, and the physical sciences. Keep in mind, correlation does not imply causation; it only indicates that a relationship exists.
Significance Level
The significance level ( **伪**) is a pivotal concept in hypothesis testing, indicating the probability of rejecting the null hypothesis when it is actually true. Typically set at values like **0.05** or **0.01**, it reflects how confident we are in our hypothesis testing procedure. A **1%** significance level, as in our exercise, implies a very strict criteria for significance, indicating a **1%** risk of concluding that a correlation exists when it doesn't. Choosing a significance level involves balancing the risks of making a Type I error (false positive) against the desire to confidently detect an effect. A significance level must be determined before testing to ensure objectivity. Lower significance levels demand stronger evidence to reject the null hypothesis, thus providing a more robust conclusion. Remember, a lower **伪** means stricter evidence requirements, which can be crucial when making important decisions based on statistical analyses.
t-distribution
The t-distribution, also known as the Student's t-distribution, is essential in hypothesis testing, particularly when dealing with small sample sizes. It's similar to the normal distribution but with thicker tails, allowing for more variability and uncertainty in the data. This makes it particularly useful when the sample size (**n**) is less than **30** or when the population standard deviation is unknown. For correlation coefficients, the t-distribution helps determine the critical t-values, which are compared against the calculated test statistic to decide whether to reject the null hypothesis. In our exercise, different sample sizes (n = 6 and n = 10) affected the degrees of freedom and thus the critical t-values, highlighting the impact of sample size on test statistics. Degrees of freedom, calculated as **n - 2** for correlation tests, influence the shape of the t-distribution curve. With larger samples, the t-distribution approaches a normal distribution, offering more precise hypothesis testing results. Hence, understanding and using the t-distribution allows for informed decisions when evaluating statistical significance in smaller samples.

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Most popular questions from this chapter

Over the past few years, there has been a strong positive correlation between the annual consumption of diet soda drinks and the number of traffic accidents. (a) Do you think increasing consumption of diet soda drinks causes traffic accidents? Explain. (b) What lurking variables might be causing the increase in one or both of the variables? Explain.

If two variables have a negative linear correlation, is the slope of the least-squares line positive or negative?

Ocean currents are important in studies of cli mate change, as well as ecology studies of dispersal of plankton. Drift bottles are used to study ocean currents in the Pacific near Hawaii, the Solomon Islands, New Guinea, and other islands. Let \(x\) represent the number of days to recovery of a drift bottle after release and \(y\) represent the distance from point of release to point of recovery in \(\mathrm{km} / 100 .\) The following data are taken from the reference by Professor E.A. Kay, University of Hawaii. $$\begin{array}{l|lllll}\hline x \text { days } & 74 & 79 & 34 & 97 & 208 \\\\\hline y \mathrm{km} / 100 & 14.6 & 19.5 & 5.3 & 11.6 & 35.7 \\ \hline\end{array}$$ Reference: \(A\) Natural History of the Hawaiian Islands, edited by E. A. Kay, University of Hawaii Press. (a) Verify that \(\Sigma x=492, \Sigma y=86.7, \Sigma x^{2}=65,546, \Sigma y^{2}=2030.55\) \(\Sigma x y=11351.9,\) and \(r \approx 0.93853\) (b) Use a \(1 \%\) level of significance to test the claim \(\rho>0\) (c) Verify that \(S_{e} \approx 4.5759, a \approx 1.1405,\) and \(b \approx 0.1646\) (d) Find the predicted distance \((\mathrm{km} / 100)\) when a drift bottle has been floating for 90 days. (e) Find a \(90 \%\) confidence interval for your prediction of part (d). (f) Use a \(1 \%\) level of significance to test the claim that \(\beta>0\) (g) Find a \(95 \%\) confidence interval for \(\beta\) and interpret its meaning in terms of drift rate. (h) Consider the following scenario. A sailboat had an accident and radioed a Mayday alert with a given latitude and longitude just before it sank. The survivors are in a small (but well provisioned) life raft drifting in the part of the Pacific Ocean under study. After 30 days, how far from the accident site should a rescue plane expect to look?

Please do the following. (a) Draw a scatter diagram displaying the data. (b) Verify the given sums \(\Sigma x, \Sigma y, \Sigma x^{2}, \Sigma y^{2},\) and \(\Sigma x y\) and the value of the sample correlation coefficient \(r\) (c) Find \(\bar{x}, \bar{y}, a,\) and \(b .\) Then find the equation of the least- squares line \(\hat{y}=a+b x\) (d) Graph the least-squares line on your scatter diagram. Be sure to use the point \((\bar{x}, \bar{y})\) as one of the points on the line. (e) Interpretation Find the value of the coefficient of determination \(r^{2} .\) What percentage of the variation in \(y\) can be explained by the corresponding variation in \(x\) and the least-squares line? What percentage is unexplained? Answers may vary slightly due to rounding. Miles per Gallon Do heavier cars really use more gasoline? Suppose a car is chosen at random. Let \(x\) be the weight of the car (in hundreds of pounds), and let \(y\) be the miles per gallon (mpg). The following information is based on data taken from Consumer Reports (Vol. \(62,\) No. 4 ). Complete parts (a) through (e), given \(\Sigma x=299, \Sigma y=167, \Sigma x^{2}=11,887\) \(\Sigma y^{2}=3773, \Sigma x y=5814,\) and \(r \approx-0.946\) (f) Suppose a car weighs \(x=38\) (hundred pounds). What does the least-squares line forecast for \(y=\) miles per gallon?

In the least-squares line \(\hat{y}=5-2 x,\) what is the value of the slope? When \(x\) changes by 1 unit, by how much does \(\hat{y}\) change?

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