Table of contents
- 1. Intro to Stats and Collecting Data55m
- 2. Describing Data with Tables and Graphs1h 55m
- 3. Describing Data Numerically1h 45m
- 4. Probability2h 16m
- 5. Binomial Distribution & Discrete Random Variables2h 33m
- 6. Normal Distribution and Continuous Random Variables1h 38m
- 7. Sampling Distributions & Confidence Intervals: Mean1h 3m
- 8. Sampling Distributions & Confidence Intervals: Proportion1h 12m
- 9. Hypothesis Testing for One Sample1h 1m
- 10. Hypothesis Testing for Two Samples2h 8m
- 11. Correlation48m
- 12. Regression1h 4m
- 13. Chi-Square Tests & Goodness of Fit1h 20m
- 14. ANOVA1h 0m
11. Correlation
Correlation Coefficient
Problem 13.6.2
Textbook Question
Rank Correlation Use the ranks from Exercise 1 to find the value of the rank correlation coefficient. Also, use a 0.05 significance level and find the critical value of the rank correlation coefficient. What do you conclude about correlation?

1
Step 1: Recall the formula for the Spearman rank correlation coefficient (ÒÏ), which is given by: , where is the difference between the ranks of each pair of data points, and is the number of data pairs.
Step 2: Use the ranks provided in Exercise 1 to calculate the differences () between the two sets of ranks for each data pair. Then, square each difference to find .
Step 3: Sum all the squared differences () and substitute this value, along with the total number of data pairs (), into the formula for to compute the rank correlation coefficient.
Step 4: Determine the critical value for the Spearman rank correlation coefficient at a significance level of 0.05. This value can be found in a statistical table for Spearman's rank correlation, based on the sample size ().
Step 5: Compare the calculated rank correlation coefficient () to the critical value. If the absolute value of is greater than the critical value, reject the null hypothesis and conclude that there is a significant correlation. Otherwise, fail to reject the null hypothesis and conclude that there is no significant correlation.

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Key Concepts
Here are the essential concepts you must grasp in order to answer the question correctly.
Rank Correlation Coefficient
The rank correlation coefficient, often represented by Spearman's rho, measures the strength and direction of association between two ranked variables. It assesses how well the relationship between the variables can be described using a monotonic function. Unlike ÃÛÌÒapp's correlation, which requires interval data, Spearman's can be used with ordinal data, making it suitable for ranked datasets.
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Correlation Coefficient
Significance Level
The significance level, commonly denoted as alpha (α), is the threshold used to determine whether a statistical result is significant. In this context, a 0.05 significance level indicates a 5% risk of concluding that a correlation exists when there is none (Type I error). It helps researchers decide whether to reject the null hypothesis, which typically states that there is no correlation between the variables.
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Step 4: State Conclusion Example 4
Critical Value
The critical value is a point on the scale of the test statistic that defines the boundary for rejecting the null hypothesis. For rank correlation, the critical value is determined based on the chosen significance level and the sample size. If the calculated rank correlation coefficient exceeds this critical value, it suggests a statistically significant correlation, leading to a rejection of the null hypothesis.
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