A test includes paired salary grade and stress level for 8 randomly selected jobs.

Does there appear to be a relationship between the salary of a job and their perceived stress
level? Using the Spearman Rank Correlation coefficient, is the relationship significant at 5%
level? If a person's salary grade is 6, what is the perceived stress level?

Step 1: State the Null and Alternative Hypothesis

• H0: There is no correlation between the salary grade of a job and their perceived stress level. (𝜌= 0)

• H1: There is a significant correlation between the salary grade of a job and their perceived level of
stress. (𝜌 ≠ 0)

Step 2: Set the Level of Significance or Alpha Level

• α = 0.05

Step 3: Determine the Test Distribution to Use

• Dependent Variable: Stress level

• Independent Variable: Salary Grade

Since we have to measure the direction of association between two ranked variables that are not
normal, we will utilize the nonparametric version of the Pearson, the Spearman rank correlation
coefficient (p).

Step 4: Calculate Test Statistic or P-value.

• Ranking the Data using the excel function RANK.AVG.

Job Salary Grade Stress Level RANK_SALARY RANK_STRESS LEVEL

Pilot 8 30 2 6
Teacher 2 50 6 1
Driver 1 27 7.5 7
Entertainer 9 25 1 8
Laborer 1 37 7.5 3
Businessman 6 33 3 4
Analyst 5 31 4 5
Banker 4 42 5 2
 • Using Data Analysis > Regression to find P-values.

SUMMARY OUTPUT

Regression Statistics
Multiple R 0.4551
R Square 0.2071
Adjusted R Square 0.0750
Standard Error 2.341821296
Observations 8

ANOVA
df SS MS F Significance F
Regression 1 8.5952 8.5952 1.5673 0.2572
Residual 6 32.9048 5.4841
Total 7 41.5

Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%
Intercept 6.5357 1.8247 3.5817 0.0116 2.0708 11.0007 2.0708 11.0007
X Variable 1 -0.4524 0.3614 -1.2519 0.2572 -1.3366 0.4318 -1.3366 0.4318

Step 5: Make Statistical Decision

If p-value ≤ 𝛼, reject H0, otherwise failed to reject H0.

• Multiple R = 0.4551
- We can interpret that we have a Weak Positive Relationship between our variables, the salary
grade and the perceived level of stress.
• R Square = 0.2071
- We can interpret that we have low predictive
• P value = 0.2572
- We can interpret that we have

Step 6: Draw Conclusion

• dle children.