To test whether extracurricular activity is a good predictor of college success, a college administrator records whether students participated in extracurricular activities during high school and their subsequent college freshman GPA.

Extracurricular Activity College Freshman GPA

Yes 3.51 Yes 3.35

Yes 3.87 Yes 3.67

No 3.01 No 3.86

No 3.46 No 2.75

No 3.93 No 2.82

(a) Code the dichotomous variable and then compute a point-biserial correlation coefficient. (Round your answer to three decimal places.)

(b) Using a two-tailed test at a 0.05 level of significance, state the decision to retain or reject the null hypothesis. Hint: You must first convert r to a t-statistic. Retain the null hypothesis. Reject the null hypothesis.