2. A researcher investigated the relationship between family income and savings. Using the data from 15 families, the computed r, between income and savings was found to be 0.76. Is the computed / significant at 0.05 level of significance? Can we conclude that the relationship really exists? Steps Solution 1. State the null and alternative hypotheses 2. Compute the value of t using the formula. n - t : - 72 3. Compare the computed value of t with the critical value of t 4. Make a decision 5. Summarize the results.Example 2 IQ Scores and Age information A researcher would like to know if IQ scores are related to age. Using 10 high school students, he found out that the computed r is 0.58. At 0.05 level of significance, can he conclude that the relationship really exists in the population? Steps Solution 1. State the null and alternative Ho : There is no significant hypotheses relationship between IQ scores and GOD NG PASIC ION OF PASIG G NG LONGSO VISIOinformation aleglan age (r=0) HA : There is a significant correlation between IQ scores and age (r*0) 2. Compute for the value of t Here n=10 and r=0.58 using the formula: t= r n-2 n-2 HIMDIE HAT SUITE 1-12 t= r 1- 72 t= 0.58 10-2 1-(0.58)2 t=2.01 3. Compare the computed value Using df=n-2=10-2=8, a=0.05, two- of t with the critical value of t tailed test, we get from the table of t-values that the critical value of t is 2.306 4. Make a decision Since the computed value of t=2.01 is less than the critical value of t hedugmoo 90 which is 2.306, we accept the null hypothesis. So, we say that there is no significant relationship between IQ scores and age. 5. Summarize the results We conclude that the relationship between IQ scores and age does not ed quidanosler Ingstrigis on al really exist in the population. Thus regression analysis should not be performed since the test of Xd significance of r yields no significant result