Are short people shortchanged when it comes to salary? According to business professors T. A. Judge (University of Florida) and D. M. Cable (University of North Carolina), tall people tend to earn more money over their career than short people earn (Journal of Applied Psychology, June 2004). Using data collected from participants in the National Longitudinal Surveys, the researchers computed the correlation between average earnings (in dollars) from 1985 to 2000 and height (in inches) for several occupations. The results are given in the following table:

a. Interpret the value of r for people in sales occupations.
b. Compute r2 for people in sales occupations. Interpret the result.
c. Give H0 and Ha for testing whether average earnings and height are positively correlated.
d. Compute the test statistic for testing H0 and Ha in part c for people in sales occupations.
e. Use the result you obtained in part d to conduct the test at α = .01. State the appropriate conclusion.
f. Select another occupation and repeat parts a-e.

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Occupation Sales Managers Blue Collar Service Workers Professional/Technical Clerical Crafts/Forepersons Correlation, Sample Size, n .35 .32 31 .30 .25 24 455 349 265 453 358 250