You are testing the null hypothesis that there is no linear relationship between two variables, X and Y. From your sample of n=10, you determine that r=0.80.
a. What is the value of tstat?
b. At the a=0.05 level of significance, what are the critical values?
c. Based on your answers to a and b what statistical decision should you make?
The solution provides step-by-step method for the calculation of test statistic for significance of correlation coefficient. Formula for the calculation and Interpretations of the results are also included.