In: Statistics and Probability
12. The data below shows the annual salaries (in millions) and the number of viewers (in millions) of eight television actors and actresses. Construct a scatterplot, find the value of the linear correlation coefficient r, and find the P-value using a=0.05. Is there sufficient evidence to conclude that there is a linear correlation between the two variables?
Salary_(x) Viewers_(y)
91 17
13 4.7
15 5.3
30 1.5
10 10.6
5 9.8
7 13.2
4 4.6
Construct the scatterplot.
The linear correlation coefficient r is _____
(Round to three decimal places as needed.)
The test statistic t is _____
(Round to three decimal places as needed.)
The P-value is ______
(Round to three decimal places as needed.)
Because the P-value is (greater,less) than the significance level 0.05, there (is not, is) sufficient evidence to support the claim that there is a linear correlation between selling price (in hundred thousands) and the list price (in hundred thousands) of homes sold for a significance level of a=0.05.
| X | Y | X * Y | 
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| 91 | 17 | 1547 | 8281 | 289 | |
| 13 | 4.7 | 61.1 | 169 | 22.09 | |
| 15 | 5.3 | 79.5 | 225 | 28.09 | |
| 30 | 1.5 | 45 | 900 | 2.25 | |
| 10 | 10.6 | 106 | 100 | 112.36 | |
| 5 | 9.8 | 49 | 25 | 96.04 | |
| 7 | 13.2 | 92.4 | 49 | 174.24 | |
| 4 | 4.6 | 18.4 | 16 | 21.16 | |
| Total | 175 | 66.7 | 1998.4 | 9765 | 745.23 | 



To Test :-
H0 :- 
H1 :-  
Test Statistic :-
t = 1.448
Test Criteria :-
Reject null hypothesis if 
-2.4469 < 1.4485 < 2.4469
Result :- We fail to Reject null hypothesis
Decision based on P value
P - value = P ( t > 1.4485 ) = 0.198
Reject null hypothesis if P value < 
  
level of significance
P - value = 0.1976 > 0.05 ,hence we fail to reject null
hypothesis
Conclusion :- We Accept H0
There is statistically uncorrelation between two variables at 5% level of significance.
Because the P-value is (greater) than the significance level 0.05, there (is not ) sufficient evidence to support the claim that there is a linear correlation between selling price (in  thousands) and the list price (in  thousands) of homes sold for a significance level of a=0.05.