The author is a member of the board of directors of a nonprofit organization that held a fund-raising auction. He recorded the opening bids suggested by the auctioneer and the final winning bids for several items. The amounts are listed below. Is there sufficient evidence to conclude that there is a linear correlation between the opening bids suggested by the auctioneer and the final winning bids?

Construct a scatterplot, and find the value of the linear correlation coefficient r. Also find the P-value or the critical values of r from Table A-6 using α = 0.05. Determine whether there is sufficient evidence to support a claim of a linear correlation between the two variables.

Transcribed Image Text:

Opening Bid 500 500 500 400 300 Winning Bid 650 175 125 275 125