Note: questions 41-43 refer to the following correlation matrix based on data fr

Question

Note: questions 41-43 refer to the following correlation matrix based on data from 256 salaried employees of an electronics firm. The three variables are annual salary (in dollars) educational level (in years), and gender (where arbitrary numerical codes have been assigned to male (0) and female (1) EDUCATIONAL LEVEL ANNUAL SALARY GENDER ANNUAL SALARY -.26 256 256 2256 EDUCATIONAL LEVEL 37 1.00 .05 GENDER r 26 205 1.00 41. When duplicate correlations have been ignored, there remain a) two correlations b) three correlations. c) six correlations. d) nine correlations. 42. Only of these correlations should be taken seriously (statistically significant). a) one b) two c) three d) an unknown number 43. It is reasonable to conclude that a) annual salaries tend to increase with educational level, and salaries of males tend to be higher than sec 1 Pages:

Explanation / Answer

41. c) six correlations

First 3 correlations for the first variable + for the second variable, last two correlations + for the third variable only the last correlation.

Others are repeated.

42. c) three

Since among the six correlations( without duplicates) , three correlations are correlations of a variable with itself which is not at all significant. So, we may ignore these three correlations and consider the other three as significant.

43. a) annual salaries tend to increase with educational level, and salaries of males tend to be higher than those of females.

Th reason is there is positive correlation between annual salary and educational level, hence if one increases, the other increases, on the other hand there is negative correlation between annual salary and gender which means if one increases the other decreases. Since male is given by 0 and female by 1, males will have higher annual salaries.

44. TRUE

By the definition of coefficient of determination (R2), the statement is true.

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