Answer to Question #267337 in Statistics and Probability for Jannat

Question

Assume you are interested in the relationship between the expected number of years of schooling and the gross national income (see data.sav / data.xlsx file – I recommend using PSPP

Decide whether to use one- or two-tailed testing and set up H0 and H1 accordingly. (1p.)

Evaluate the distribution of the two variables by making use of at least three of the following evaluation tools: skewness, kurtosis, rules of thumb of box-and-whisker plot, outliers, histogram… and decide whether to use Pearson correlation (parametric) or Spearman correlation (non-parametric). (2p.)

Draw a scatterplot in PSPP and interpret the relationship according to your visual impression. Run the correlation in PSPP and compare the correlation coefficient with your visual impression. (2p.)

Give an answer to your hypotheses according to the p-value of the PSPP-output. (1p.)