Question

In: Statistics and Probability

Listed below are amounts of bills for dinner and the amounts of the tips that were...

Listed below are amounts of bills for dinner and the amounts of the tips that were left. Construct a​ scatterplot, find the value of the linear correlation coefficient​ r, and find the​ P-value of r. Determine whether there is sufficient evidence to support a claim of linear correlation between the two variables. Use a significance level of α = 0.01. If everyone were to tip with the same​ percentage, what should be the value of​ r? Bill​ (dollars) 31.62 52.20 90.36 99.42 60.70 100.52 Tip​ (dollars) 3.90 10.40 8.62 18.13 10.60 12.95 . The linear correlation coefficient r is __​______. (Round to three decimal places as​ needed.) Determine the null and alternative hypotheses. Ho​: ρ(1)____________ ________________ H1​: ρ(2)___________ ________________ (Type integers or decimals. Do not​ round.) The test statistic is _________. ​ (Round to two decimal places as​ needed.) The​ P-value is _________.​ (Round to three decimal places as​ needed.) Because the​ P-value of the linear correlation coefficient is (3) ___________the significance​ level, there (4)____________ sufficient evidence to support the claim that there is a linear correlation between bill amounts and tip amounts. If everyone were to tip with the same​ percentage, then r = ________ . ​(Round to three decimal places as​ needed.) (1) ≠ > = < (2) > = ≠ < (3) greater than less than or equal to (4) is not is

Solutions

Expert Solution

correlation r='Sxy/(√Sxx*Syy) = 0.763
null hypothesis: Ho:           ρ'= 0
Alternate Hypothesis: Ha: ρ≠ 0
test stat t= r*(√(n-2)/(1-r2))= 2.36
P value    = 0.078 (from excel:tdist(2.3578,4,2)

Because the​ P-value of the linear correlation coefficient is greater than the significance​ level, there is not sufficient evidence to support the claim that there is a linear correlation between bill amounts and tip amounts

If everyone were to tip with the same​ percentage, then r = 1.000


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