Data from the U.S. Federal Reserve Board (federalreserve.gov/releases/housedebt/, retrieved April 21, 2017) on consumer debt (as a
Question:
Data from the U.S. Federal Reserve Board (federalreserve.gov/releases/housedebt/, retrieved April 21, 2017) on consumer debt (as a percentage of personal income) and mortgage debt (also as a percentage of personal income) for the 10 years from 2006 to 2015 are shown in the following table:
Consumer ........... Debt Household Debt
6.73 ................................ 5.97
7.07 ................................ 5.97
6.96 ................................ 5.87
6.69 ................................ 5.60
6.18 ................................ 5.16
5.58 ................................ 5.06
5.14 ................................ 4.97
4.95 ................................ 5.22
4.73 ................................ 5.31
4.59 ................................ 5.45
a. What is the value of the correlation coefficient for this data set?
b. Is it reasonable to conclude in this case that there is no strong relationship between the variables (linear or otherwise)? Use a graphical display to support your answer.
Step by Step Answer:
Introduction To Statistics And Data Analysis
ISBN: 9781337793612
6th Edition
Authors: Roxy Peck, Chris Olsen, Tom Short