Suppose That I Have a Randomly Selected Sample of 42

question 1

Essay

Suppose that I have a randomly selected sample of 42 American men. In this sample, the average number of hours worked per week is 45 with a standard deviation of 12. The average level of life satisfaction (on a scale from 1 = "hating life" to 10 = "loving life) is 5.00 with a standard deviation of 3.00. The correlation between hours worked and life satisfaction is .40. Please answer the following 10 questions based on these data.
a. What does this correlation coefficient tell you about the relationship between hours worked and life satisfaction? (Be thorough-tell me about the strength, direction, and for whom this information applies).
b. If we use an alpha level of .01, is this a statistically significant correlation? Calculate the statistics and wrap words around your results. (Be thorough-tell me all that you know).
c. Please give me one plausible (i.e., reasonable) EXPLANATION for why hours worked and life satisfaction are related to each other this way in this sample.

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Definitions:

Depreciation

A reduction in the value of an asset over time, due to wear and tear or obsolescence.

Intermediate Goods

Goods that are used as inputs in the production of final goods, not intended for final consumption.

Inventory

The total amount of goods and materials a business holds for the ultimate goal of resale or production.

GDP

Gross Domestic Product, a measure of the economic output of a country, considered by calculating the total value of all final goods and services produced within that country over a specified period.