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I the Basic Question in Testing the Significance of Rho

question 88

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i. The basic question in testing the significance of rho is to see if there is zero correlation in the population from which the sample was selected. ii. A t test is used to test the significance of the coefficient of correlation.
iii. Suppose a sample of 15 homes recently sold in your area is obtained. The correlation between the area of the home, in square feet, and the selling price is 0.40. We want to test the hypothesis that the correlation in the population is zero versus the alternate that it is greater than zero. You determine that the rejection region should fall in the lower tail if this is a one-tailed test and we use a 0.01 significance level.

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Definitions:

Wilhelm Wundt

Often considered the father of modern psychology, he established the first psychology laboratory in Leipzig, Germany, in 1879.

Modern Psychology

The scientific study of the mind and behavior, incorporating contemporary theories, research methods, and applications to understand psychological phenomena.

Empirical Methods

Research methodologies that involve the collection of data through direct observation or experiment.

Modern Psychology

The scientific study of the mind and behavior, incorporating contemporary theories, research methods, and applications in understanding psychological phenomena.

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