Consider the rental price data in Table B.24. Assume that median home rental price and median price per square foot are jointly normally distributed.

a. Find the correlation between home rental price and home price per square foot.

b. Test the hypothesis that $ho=0$.

c. Test the hypothesis that $\boldsymbol{ho}=0.5$.

d. Find a $95 %$ CI for $ho$.

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95th Percentile City Population Income Median Sale Price Median Rental Price/sqft Price Los Angeles Long Beach - 3,976,322 258,144 554,700 387.32 3095 Anaheim, CA Chicago, IL Dallas-Fort Worth, TX 2,704,958 231,116 2,172,042 235,120 212,500 145.89 1600 222,800 121.74 1595 Philadelphia, PA 1,567,872 174,127 195,100 129.36 1500 Houston, TX 2,303,482 234,742 205,200 113.88 1600 Washington, DC 681,170 352,958 363,100 211.71 2200 Miami-Fort Lauderdale, FL 453,579 200,530 231,900 198.02 2100 Atlanta, GA 472,522 306,307 Boston, MA 673,184 261,973 177,100 104.74 381,200 1295 245.01 2595 San Francisco, CA 870,887 507,824 Riverside, CA 324,722 198,549 305,100 183.18 715,400 439.31 3200 1750 Phoenix, AZ 1,615,017 200,053 224,500 139.51 1300 Seattle, WA 704,352 334,519 365,800 221.63 2095 Minneapolis-St Paul, MN 716,049 222,240 227,700 176.47 1495 San Diego, CA 1,406,630 267,615 485,900 330.4 2550 St. Louis, MO 311,404 181,227 156,100 115.16 1000 Tampa, FL 377,165 251,897 166,600 122.62 1395 Baltimore, MD 614,664 204,678 238,400 171.13 1600 Denver, CO 693,060 276,281 334,200 232.07 1995 Pittsburgh, PA 303,625 181,433 130,000 110.17 1100 Portland, OR 639,863 247,701 321,400 198.28 1795 Charlotte, NC 842,051 236,485 185,400 114.5 1300 Sacramento, CA 495,234 195,061 336,300 211.64 1595 San Antonio, TX 1,492,510 177,060 194,600 113.58 1150 Orlando, FL 277,173 177,393 203,200 124.29 1450 Cincinnati, OH 298,800 182,181 143,500 103.98 1190 Las Vegas, NV 632,912 180,963 206,300 129.71 1295 Columbus, OH 860,090 156,833 San Jose, CA 1,025,350 Austin, TX 947,890 Virginia Beach, VA 452,602 Nashville, TN Milwaukee, WI Jacksonville, FL Memphis, TN Oklahoma City, OK Louisville, KY Hartford, CT Richmond, VA New Orleans, LA Buffalo, NY Raleigh, NC Birmingham, AL Salt Lake City, UT Rochester, NY Tucson, AZ Fresno, CA Worcester, MA New Haven, CT 164,100 114.43 1200 347,618 843,400 547.45 3500 292,201 268,300 149.53 1450 211,324 660,388 200,174 595,047 139,553 880,619 170,019 652,717 162,902 638,367 198,232 616,261 182,454 159,600 123,243 135,161 206,600 223,170 197,041 391,495 203,254 256,902 158,362 128,900 458,880 246,055 234,800 212,157 135,822 135,000 193,744 213,734 208,880 131,994 530,706 142,700 446,970 181,767 224,200 184,508 185,698 224,300 129,934 168,491 191900 202,200 132.08 1350 211,500 140.84 1500 185,000 129.93 1150 163,900 117.24 1250 133,300 81.38 995 142,400 108.05 1150 116.49 995 147.96 1600 201,800 126.64 1240 183,100 129.25 1320 102.51 1200 124.68 1399 99.06 1000 264,000 180.17 1400 142,600 93.13 1200 182,200 117.22 1100 145.39 1200 156.55 152.71 1650 1500 Albuquerque, NM Omaha, NE 559,277 189,916 446,970 202,123 186,300 128.91 1200 151,900 126.05 1200