Big Rock Insurance Company did a study of per capita income and volume of insurance sales in eight Midwest cities. The volume of sales in each city was ranked, with 1 being the largest volume. The per capita income was rounded to the nearest thousand dollars.

(i) Using a rank of 1 for the highest per capita income, make a table of ranks to be used for a Spearman rank correlation test.
(ii) Using a 0.01 level of significance, test the claim that there is a monotone relation (either way) between rank of sales volume and rank of per capita income.
(a) What is the level of significance? State the null and alternate hypotheses.
(b) Compute the sample test statistic.
(c) Find or estimate the P-value of the sample test statistic.
(d) Conclude the test.
(e) Interpret the conclusion in the context of the application.

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City Rank of insurance 4 6 es 4 sales volume Per capita income 17 18 16 20 5 9 in $1000