Exercise 14-9 Algo

A realtor studies the relationship between the size of a house (in square feet) and the property taxes (in $) owed by the owner. The table below shows a portion of the data for 20 homes in a suburb 60 miles outside of New York City.(You may find it useful to reference thettable.)

Property Taxes	Size
21,983	2,438
17,449	2,409
29,235	2,854

Click here for the Excel Data File

a-1.Calculate the sample correlation coefficientr_xy.(Round final answer to 4 decimal places.)

a-2.Interpretr_xy.

multiple choice 1

• The correlation coefficient indicates a positive linear relationship.
• The correlation coefficient indicates a negative linear relationship.
• The correlation coefficient indicates no linear relationship.

b.Specify the competing hypotheses in order to determine whether the population correlation coefficient between the size of a house and property taxes differs from zero.

multiple choice 2

• H₀:_xy= 0;H_A:_xy 0
• H₀:_xy 0;H_A:_xy< 0
• H₀:_xy 0;H_A:_xy> 0

c-1.Calculate the value of the test statistic.(Round final answer to 3 decimal places.)

c-2.Find thep-value.

multiple choice 3

• p-value < 0.01
• p-value0.10
• 0.05p-value < 0.10
• 0.02p-value < 0.05
• 0.01p-value < 0.02

d.At the 5% significance level, what is the conclusion to the test?

multiple choice 4

• RejectH₀; we can state size and property taxes are correlated.
• RejectH₀; we cannot state size and property taxes are correlated.
• Do not rejectH₀; we can state size and property taxes are correlated.
• Do not rejectH₀; we cannot state size and property taxes are correlated.