Question: Hypothesis testing based on r (correlation)

Click the 'scenario' button below to review the topic and then answer the following question:

Description: A downloadable spreadsheet named CV of r was provided in the assessment instructions for you to use for this question. In some workplaces, the longer someone has been working within an organization, the better the pay is. Although seniority provides a way to reward long-serving employees, critics argue that it hinders recruitment. Jane, the CPO, wants to know if XYZ has a seniority pay system.

Question: Based on the salary and age data in the spreadsheet, find the value of the linear correlation coefficient r, and the p-value and the critical value of r using alpha = 0.05. Determine whether there is sufficient evidence to support the claim of linear correlation between age and salary.

Table A-6
n	= 0.05	= 0.01
4	0.95	0.99
5	0.878	0.959
6	0.811	0.917
7	0.754	0.875
8	0.707	0.834
9	0.666	0.798
10	0.632	0.765
11	0.602	0.735
12	0.576	0.708
13	0.553	0.684
13	0.553	0.684
14	0.532	0.661
15	0.514	0.641
16	0.497	0.623
17	0.482	0.606
18	0.468	0.59
19	0.456	0.575
20	0.444	0.561
25	0.396	0.505
30	0.361	0.463
35	0.335	0.43
40	0.312	0.402
45	0.294	0.378
50	0.279	0.361
60	0.254	0.33
70	0.236	0.305
80	0.22	0.286
90	0.207	0.269
100	0.196	0.256