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Significance of correlation : T Test

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An assumption for a significance test of the correlation coefficient is that the populations, the variance of each variable is the same at each point of the other variable. Are there other assumptions to correlation coefficient? What happens if these assumptions are not met? What two numbers do you need to figure the t score for the significance test of a correlation coefficient between X and Y?

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Solution Summary

The solution provides step by step method for the calculation of test statistic for significance of correlation coefficient . Formula for the calculation and Interpretations of the results are also included.

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Correlation
An assumption for a significance test of the correlation coefficient is that the populations, the variance of each variable are the same at each point of the other variable. Are there other assumptions to correlation coefficient? What happens if these assumptions are not met? What two numbers do you need to figure the t score for the significance test of a correlation coefficient between X and Y?
Answer
The conventional tests of significance of the Pearson product moment correlation coefficient depend on an assumption of a bivariate normal population distribution. Under this assumption a t statistic calculated from a sample correlation provides a test of ...

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