See attached datafile.
Use the attached CIA Economic and Demographic data report on 46 countries. Take the variables literacy rate, population, and GDP for each country, and compute the correlationamong variables. In other words, find the correlation between literacy and pupulation, literacy and GDP, and population and GDP. At the 0.05 significance level, can we conclude that the correlation is different from zero for each pair of the variables ?
Please show a step by step answer especially for the test statistic used to compute the t value for the null hypothesis.
The solution provides step by step method for the calculation of correlation coefficient and test statistic for significance of correlation coefficient. Formula for the calculation and Interpretations of the results are also included.