Data on x = depth of flooding and y = flood damage were given in Exercise 5.75. Summary quantities are

a. Do the data suggest the existence of a positive linear relationship (one in which an increase in y tends to be associated with an increase in x)? Test using a .05 significance level.

b. Predict flood damage resulting from a claim made when depth of flooding is 3.5 ft, and do so in a way that conveys information about the precision of the prediction.

Data from Exercises 5.75

The relationship between the depth of flooding and the amount of flood damage was examined in the paper “Significance of Location in Computing Flood Damage” (Journal of Water Resources Planning and Management [1985]: 65–81). The following data on x = depth of flooding (feet above first-floor level) and y = flood damage (as a percentage of structure value) were obtained using a sample of flood insurance claims:

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n = 13 2y=470 2x=91 Σχ = 819 2y = 19,118 Σxy = 3867