13.39 [EX13-39] Two indicators of the level of economic activity in a given geographical area are its total personal income and the value of new privately owned housing units. The following table lists the data for seven states for the year 2004.

a. Calculate the correlation coefficient between the two variables.

b. Test for a significant correlation at the 0.05 level of significance and draw your conclusion.

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State Personal Income ($ millions) Valuation ($ thousands) Colorado 165,942 8,050,293 Kansas 84,282 1,925,642 Missouri 176,137 4,286,161 Nebraska 54,756 1,372,588 New Mexico 49,849 1,747,309 Oklahoma 98,974 2,184,108 Wyoming 17,377 524,504