Question

In: Statistics and Probability

DETROIT (Y) ANN ARBOR (X) 2008       59                           2008    

DETROIT (Y) ANN ARBOR (X)

2008       59                           2008       61

2009       60                           2009       58

2010       61                           2010       60

2011       69                           2011       68

2012       66                           2012       67

2013       62                           2013       64

2014       64                           2014       66

2015       71                           2015       70

2016       69                           2016       72

2017       66                           2017       64

h0  :There is a statistical correlation between the temperatures in two different Michigan cities.

What relationships exist between the data sets? Are they significant and why?

Solutions

Expert Solution

Here we are to test the presense of correlation between the temperatures of two different Michigan cities.

If be the correlation coefficient between the temperatures of the two cities.

We are to test the hypothesis :

                           versus

If r be the sample correlation coeffecient and n be the sample size which is 10.

The appropriate test statistic would be :

           

Now, t follows t-distribution with (n-2) degrees of freedom.

We shall reject our null hypothesis if our observed t > t;n-2

  • Our sample correlation r=0.906788 from which we may conclude that linear relationship exists between the data sets.

Accordingly, t=0.906788 * sqrt(10-2) / sqrt(1-0.9067882)

                    = 6.0836

If our chosen level of significance

t0.05,8 =1.860

Clearly , Observed t > t0.05,8

So, we reject our null hypothesis at 5% level of significance and conclude that the temperature in the two cities are significantly correlated.


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