MS Module 19 Correlation basic practice exam questions

(The attached PDF file has better formatting.)

[The practice problems in the 24 modules explain the statistical procedures; the practice exam questions in this thread shows what you will be asked on the final exam.]

Question 19.1: t value for correlation

A regression model Yj = β0 + β1 Xj + εj has N = 12 observations. The sample correlation between X and Y is 0.49. We test the null hypothesis H0: ρ = 0.

What is the t value to test the null hypothesis?

Answer 19.1: 0.49 × (12 – 2)0.5 / (1 – 0.492)0.5 = 1.778