Salary linked to height. Are short people shortchanged when it comes to salary? According to business professors T. A. Judge (University of Florida) and D. M. Cable (University of North Carolina), tall people tend to earn more money over their career than short people earn (Journal of Applied Psychology, June 2004). Using data collected from participants in the National Longitudinal Surveys, the researchers computed the correlation between average earnings (in dollars) and height (in inches) for several occupations. The results are given in the following table.
a. Interpret the value of r for people in sales occupations.
b. Compute r2 for people in sales occupations. Interpret the result.
c. Give H0 and Ha for testing whether average earnings and height are positively correlated.
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