9.65.*Refer to the previous exercise. Let 1 and 2 denote the population correlation values between two variables

9.65.*Refer to the previous exercise. Let ρ1 and ρ2 denote the population correlation values between two variables for two separate populations. Let r1 and r2 denote sample values for independent random samples from the populations.

To test H0: ρ1 = ρ2, the test statistic is

where T1 and T2 are the transformed values of r1 and r2. If H0 is true, this test statistic has approximately the standard normal distribution. In Table 9.5, the correlation between housing price and size of home is r1 = 0.96 for the 11 new homes and r2 = 0.76 for the 89 older homes. Find the P-value for testing H0: ρ1 = ρ2 against Ha: ρ1 = ρ2.
Interpret.

Transcribed Image Text:

2 T2-T 1 1 with ST-T = + ST-T n-3 n-3'