About Lesson
LOS K requires us to:
formulate a test of the hypothesis that the population correlation coefficient equals zero and determine whether the hypothesis is rejected at a given level of significance
a. The Spearman rank correlation test can be used to assess the strength of a linear relationship between two variables.
b. The steps involved in the calculation of test statistics are:
i. Rank the observations from largest to smallest for X and Y separately, with the largest value being ranked 1 for each.
ii. Calculate the difference in ranks between each pair of observations and then the Spearman rank correlation.
iii. The Spearman rank correlation test is t-distributed with df = n – 2