A University professor examines the relationship between 2 subjects score, those Accounting scores and Finance scores. He uses a sample data of 14 students who took Accounting and Finance tests. The following data represents student’s scores on Accounting (X) and Finance (Y). Student Accounting Score (X) Finance Score (Y) 1 97 89 2 68 57 3 85 87 4 74 76 5 92 97 6 92 79 7 100 91 8 63 50 9 85 85 10 87 84 11 81 91 12 93 91 13 77 75 14 82 77 At the 5% significant level, specify the critical value and decision rule. Are Accounting and Finance scores correlated? Explain.
Inverse Normal Distribution
The method used for finding the corresponding z-critical value in a normal distribution using the known probability is said to be an inverse normal distribution. The inverse normal distribution is a continuous probability distribution with a family of two parameters.
Mean, Median, Mode
It is a descriptive summary of a data set. It can be defined by using some of the measures. The central tendencies do not provide information regarding individual data from the dataset. However, they give a summary of the data set. The central tendency or measure of central tendency is a central or typical value for a probability distribution.
Z-Scores
A z-score is a unit of measurement used in statistics to describe the position of a raw score in terms of its distance from the mean, measured with reference to standard deviation from the mean. Z-scores are useful in statistics because they allow comparison between two scores that belong to different normal distributions.
A University professor examines the relationship between 2 subjects score, those Accounting scores and Finance scores. He uses a sample data of 14 students who took Accounting and Finance tests. The following data represents student’s scores on Accounting (X) and Finance (Y).
| Student | Accounting Score (X) | Finance Score (Y) |
| 1 | 97 | 89 |
| 2 | 68 | 57 |
| 3 | 85 | 87 |
| 4 | 74 | 76 |
| 5 | 92 | 97 |
| 6 | 92 | 79 |
| 7 | 100 | 91 |
| 8 | 63 | 50 |
| 9 | 85 | 85 |
| 10 | 87 | 84 |
| 11 | 81 | 91 |
| 12 | 93 | 91 |
| 13 | 77 | 75 |
| 14 | 82 | 77 |
- At the 5% significant level, specify the critical value and decision rule.
- Are Accounting and Finance scores
correlated ? Explain.
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