It seems plausible that higher rent for retail space could be justified only by a higher level of sales. A random sample of n = 53 specialty stores in a chain was selected, and the values of x = annual dollar rent per square foot and y = annual dollar sales per square foot were determined, resulting in r = .37 (“Association of Shopping Center Anchors with Performance of a Nonanchor Specialty Chain Store,” Journal of Retailing : 61– 74). Carry out a test at significance level .05 to see whether there is in fact a positive linear association between x and y in the population of all such stores.
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