A marketing researcher is studying the association between r

A marketing researcher is studying the association between restaurant spending and vacation travel. She has estimated a correlation of r = 0.561, based on a sample of n = 48 consumers. Now she wants to test the size of the correlation, i.e. Ha: > 0.74, using Fisher\'s z test. What is her z statistic?

Solution

Using Online calculator for testing correlation.

[http://www.psychometrica.de/correlation.html]

Testing correlations against a fixed value

With the above mentioned calculator, can test if correlations are different from a fixed value. The test uses the Fisher-Z-transformation.

Where n=48,r=0.561 and the true value is 0.74.

Entering these values in the online calculator the Test statistic Z is obtained as -2.174 and Probability p as 0.015.

Since her z statistic is -2.174.