A social scientist analyzes the relationship between educational attainment and salary. For 65 individuals he collects data on each individual's educational attainment (in years) and his/her salary (in $1,000 s). He then calculates a Spearman rank correlation coefficient of 0.85.
a. Specify the competing hypotheses in order to determine whether educational attainment and salary are related.
b. Assume that the distribution of rs is approximately normal. Calculate the value of the test statistic and the p-value of the test.
c. At the 5% significance level, are educational attainment and salary related?