In: Statistics and Probability
8. Given the following table of x and y values, test the claim that there is a significant linear correlation. Use a .05 significance level. You do not have to find an equation.
x| 12 10 9 7 8
y| 175 169 182 146 144
Bafore testing the correlation significance we need to find the correlation coefficient, the table calculation is done for correlation coefficient calculation as:
Now the Sum of squares is caluclated as:
Based on the above table calculations the following is calculated as:
Now the Correlation coefficient is calculated as:
Now to test the claim that there is linear correlation the hypotheses are:
Rejection region:
Reject the Ho if P-value is less than 0.05
Test statistic:
The degree of freedom is calculated as df = n-2 = 5-2 = 3.
P-value:
The P-value is compute dusing the excel formula which is =T.DIST.2T(1.766, 3), THUS THE P-value is computed as 0.1756.
Concusion:
Since the P-value is greater than 0.05 hence we failed to reject the null hypothesis and conclude that there is insufficient evidence to support the claim that there is a significant linear correlation.