Question

. CORRELATION.   Is income related to education?

		RESPONDENTS INCOME	Highest Year of School Completed
RESPONDENTS INCOME	Pearson Correlation	1	.342**
	Sig. (2-tailed)		.000
	N	994	991
Highest Year of School Completed	Pearson Correlation	.342**	1
	Sig. (2-tailed)	.000
	N	991	1496
**. Correlation is significant at the 0.01 level (2-tailed).

Answer 1

We have to check if income is correlated to education. The given information is as below.

	RESPONDENTS INCOME	Highest Year of School Completed
RESPONDENTS INCOME	Pearson Correlation	1	.342**
Sig. (2-tailed)		.000
N	994	991
Highest Year of School Completed	Pearson Correlation	.342**	1
Sig. (2-tailed)	.000
N	991	1496
**. Correlation is significant at the 0.01 level (2-tailed).

To test :

Ho: The correlation between income and education is not significant

i.e. r=0

vs H1: The correlation between income and education is significant

i.e. r $\neq$ 0

It is given that the test statistic value is 0.342**

we know that ** represents the significance at given 0.01 level of significance.This means we reject H0

We reject H0 if p value is less than alpha.

The p value is less , p value =0.0001 < alpha value =0.01

Thus using the p value criteria we can reject Ho.

Hence, There is correlation between income and education of the respondant