January 2015 Take-Home Assignment, Advanced Statistics

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3. a. A researcher in Hong Kong computes the correlation between the percentage of employee turnover and the local unemployment rate (also expressed as a percentage) over a 20-month period. She obtains a value of minus 0.57. What type of correlation did she most likely compute?
b. Test the value of -0.57 for statistical significance from zero at p <.01. What critical value did you use?
c. What is your interpretation of the value of 0.57?
d. The data were obtained at the level of the SAR. Can the researcher assume that the correlation of -0.57 applies to her own employer?

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