NOTE: ANSWERS MUST BE DIGITALIZED NOT HANDWRITTEN BECAUSE I AM HAVING A HARD TIME SEEING MESSY HANDWRITING

Direction: Solve the following problem below. SHOW THE COMPLETE SOLUTION.

Scenario 4: A researcher investigated the relationship between family income and their savings. Using the data from 15 families, the computed r between income and savings was found to be 0.76. The researcher wants to test if there is a significant relationship between the two variables at 5% level of significance and create a regression equation to predict the possible savings given the income of the family. (5 points) 1. Interpret the computed r value. (Write your interpretation in statement form) 2. Test if there is a significant relationship between the two variables at 5% level of significance. (Show complete proof/steps with conclusion in statement form)