Question

Consider the following competing hypotheses and accompanying sample data.

H0:ρS0HA:ρS>0rS=0.64 and n=50\begin{aligned} &H_0: \rho_S \leq 0 \\ &H_A: \rho_S>0 \end{aligned} \quad r_S=0.64 \text { and } n=50

a. What is the value of the test statistic and its associated pp-value? Assume the normal approximation for rsr_s.

b. At the 1%1 \% significance level, what is the conclusion?

Solution

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Answered 10 months ago
Answered 10 months ago
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This two-part exercise gives us the competing hypotheses and the value of the sample Spearman rank correlation, relating to a Spearman rank correlation test being conducted. The sample size is n=50.n=50.

In this part of the exercise, we are tasked to calculate the test statistic for the test, assuming the normal approximation for rSr_{S}. We also need to compute its associated p-value.

Why can we assume normal approximation for rSr_{S}? What role does the p-value play in a hypothesis test?

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