A regional accreditation board for colleges and universities is interested in determining whether a relationship exists between student applicant verbal SAT scores and the in-state tuition costs at the university. Data have been collected on a sample of colleges and universities and are in the data file called Colleges and Universities.
a. Develop a scatter plot for these two variables and discuss what, if any, relationship you see between the two variables based on the scatter plot.
b. Compute the sample correlation coefficient.
c. Based on the correlation coefficient computed in part b, test to determine whether the population correlation coefficient is positive for these two variables. That is, can we expect schools that charge higher in-state tuition will attract students with higher average verbal SAT scores? Test using a 0.05 significance level.