Question

A neighborhood council is interested in the family income and medical care expenditures of its community. In particular, it is believed that lower income is related to more to medical care expenditures. Below are family income (per 1,000 dollars) and medical care expenditure (per 100 dollars) data from a random sample of households in the community. What can be concluded with an α of 0.05?

family income	medical care
8 5 9 11 14 16 17 18 18 21	21 16 18 13 12 15 7 8 2 3

a) What is the appropriate statistic?
---Select--- na Correlation Slope Chi-Square
Compute the statistic selected above:  

b) Compute the appropriate test statistic(s) to make a decision about H₀.
(Hint: Make sure to write down the null and alternative hypotheses to help solve the problem.)
critical value =  ; test statistic =  
Decision:  ---Select--- Reject H0 Fail to reject H0

c) Compute the corresponding effect size(s) and indicate magnitude(s).
If not appropriate, input and/or select "na" below.
effect size =  ;   ---Select--- na trivial effect small effect medium effect large effect

d) Make an interpretation based on the results.

There was a significant positive relationship between family income and medical care expenditures.There was a significant negative relationship between family income and medical care expenditures.    There was no significant relationship between family income and medical care expenditures.

Answer 1