A social scientist analyzes the relationship between educational attainment and salary. For 65 individuals he collects data

Question:

A social scientist analyzes the relationship between educational attainment and salary. For 65 individuals he collects data on each individual's educational attainment (in years) and his/her salary (in $1,000s). He then calculates a Spearman rank correlation coefficient of 0.85.

a. Specify the competing hypotheses to determine whether the Spearman rank correlation coefficient differs from zero.

b. Assume that the distribution of rs is approximately normal. Calculate the value of the test statistic and the p-value of the test.

c. At the 5% significance level, are educational attainment and salary correlated?

Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...