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 or he conclude that per capita state debt and per capita state taxes are related? Both amounts are in dollars and represent five randomly selected states.
Perform the following steps.
a. Draw the scatter plot for the variables.
b. Compute the value of the correlation coefficient.
c. State the hypotheses.
d. Test the significance of the correlation coefficient at α = 0.05, using Table I.
e. Give a brief explanation of the type of relationship.