States in the United States are allowed to set their own rates for sales taxes as well
Question:
(a) Describe the association, if any, that you fnd in the scatterplot.
(b) Estimate the correlation between the two variables from the plot. Is it positive, negative, or zero? Is it closer to zero or to {0.5?
(c) The cluster of states with no sales tax in the lower left corner of the plot includes Alaska, Delaware, Montana, New Hampshire, and Oregon. What is the effect of this cluster on the association? If these were excluded from the analysis, would the correlation change?
(d) Would it be appropriate to conclude that states that have high sales tax charge more for services like wireless telephone use?
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Related Book For
Statistics For Business Decision Making And Analysis
ISBN: 9780321890269
2nd Edition
Authors: Robert Stine, Dean Foster
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