Question: For the 50 U.S. states, the sample correlation coefficient relating the 1980 per capita income and the 1999 per capita income is approximately 0.17 (source:

For the 50 U.S. states, the sample correlation coefficient relating the 1980 per capita income and the 1999 per capita income is approximately 0.17 (source: U.S. Bureau of Economic Analysis, Survey of Current Business, May 2000). Based on this information, test for a significant linear relationship between the variables 1980 per capita income and 1999 per capita income by doing a hypothesis test regarding the population correlation coefficient p. (Assume that the two variables have a bivariate normal distribution.) Use the 0.10 level of significance, and perform a two-tailed test. Then complete the parts below. (If necessary, consult a list of formulas.) (a) State the null hypothesis Ho and the alternative hypothesis H. P H :0 X (b) Determine the type of test statistic to use. t Degrees of freedom: 020 0-0 0-0 (c) Find the value of the test statistic. (Round to three or more decimal places.) (d) Find the two critical values at the 0.10 level of significance. (Round to three or more decimal places.) X and (e) Based on the data, can we conclude (using the 0.10 level) that there is a significant linear relationship between 1980 per capita income and 1999 per capita income for U.S. states? Yes No
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