A study of the top 75 MBA programs attempted to predict the average starting salary (in $\$ 1000$ 's) of graduates of the program based on the amount of tuition (in $\$ 1000$ 's) charged by the program. We are told that the coefficient of correlation was calculated to be $r = 0.7763$. Use this information to calculate the test statistic that would be used to determine if a positive linear relationship exists between the two variables.
A) $t = 1.760$
B) $t = 10.52$
C) $t = 1.475$
D) $t = 0.6027$

Question

Quizplus · Accepted Answer

The test statistic $t$ for correlation is calculated using the formula $t = r \sqrt{\frac{n-2}{1-r^2}}$. With $r = 0.7763$ and $n = 75$, the calculation gives $t = 10.52$.

A Study of the Top 75 MBA Programs Attempted to Predict