In: Statistics and Probability
Step by step solution and explanation, please?
State whether each of the following data sets has positive or negative linear correlation (or neither). Also calculate the correlation coefficient using the Five steps for Hypothesis testing. The global average temperature (in degrees Celsius), and number of pirates are:
Temperature | 14.2 | 14.4 | 14.5 | 14.8 | 15.1 | 15.5 | 15.8 |
Pirates | 35000 | 45000 | 20000 | 15000 | 5000 | 400 | 17 |
X | Y | X*Y | X2 | Y2 | |
14.2 | 35000 | 497000 | 201.64 | 1225000000 | |
14.4 | 45000 | 648000 | 207.36 | 2025000000 | |
14.5 | 20000 | 290000 | 210.25 | 400000000 | |
14.8 | 15000 | 222000 | 219.04 | 225000000 | |
15.1 | 5000 | 75500 | 228.01 | 25000000 | |
15.5 | 400 | 6200 | 240.25 | 160000 | |
15.8 | 17 | 268.6 | 249.64 | 289 | |
Sum = | 104.3 | 120417 | 1738968.6 | 1556.19 | 3900160289 |
based on the data provided, we get that
Therefore, based on this information, the sample correlation coefficient is computed as follows
Thus , the given data set has negative linear correlation.
Hypothesis Testing:
1.Null and alternative hypothesis:
2. Set level of significance
3. Rejection region:
The sample size is n = 7, so then the number of degrees of freedom is df = n-2 = 7 - 2 = 5
The corresponding critical t value tc for a significance level of α=0.05, for a left-tailed test is:.
Reject H0 if .
4. Test Statistic:
5. Decision: Since t=-4.2952 < tc=-2.015, it is concluded that the null hypothesis is rejected at 5% level of significance.
i.e. There is negative linear correlation between the global average temperature (in degrees Celsius), and number of pirates.