A realto r studies th e relatio n sh ip b e tw e e n th e size o f a house

(in square feet) and th e prop erty taxes o w ed by th e owner.

He collects th e follow ing data on six hom es in an affluent su b u rb 6 0 m iles o u tsid e o f N e w York City. P-968 Square Feet Property Taxes ($)

Home 1 4,182 12,540 Home 2 2,844 9,363 Home 3 5,293 22,717 Home 4 2,284 6,508 Home 5 1,586 5,355 Home 6 3,394 7,901

a. Construct and in terpret a scatterplot.

b. Calculate and interpret sxy and rxy.

c. Specify th e c o m p e tin g h yp o theses in o rd e r to d e te rm in e w h e th e r th e p o p u la tio n correlation b e tw e e n th e size o f a ho use a n d p ro p e rty taxes differs fro m zero.

d. C alcu late th e v alu e o f th e te s t statistic a n d a p p ro x im a te its p -value.

e. A t th e 5 % sign ificance level, w h a t is th e conclusion to th e test?