In: Economics
For each exercise: 1. Draw the scatter plot 2. Compute the value of the correlation coefficient 3. State the Hypothesis 4. Test the significance of the correlation coefficient at α = 0.05 5. Give a brief explanation of the type of relationship
State Debt and Per Capita Tax: An economics student wishes to see if there is a relationship between the amount of state debt per capita and the amount of tax per capita at the state level. Based on the following data, can she conclude that per capita state debt and per capita state tax are related? Both amounts are in dollars and represents five randomly selected states. Per capita debt, x 1924 907 1445 1608 661 Per capita tax, y 1685 1838 1734 1842 1317
Emergency Calls and Temperature: An emergency service wishes to see whether a relationship exists between the outside temperature and the number of emergency calls it receives for a 7-hour period. Temperature, x 68 74 82 88 93 99 101 No. of calls, y 7 4 8 10 11 9 13