#1. Daily Income and Expenditure of individuals are given below

Income (X) $	Expenditure (Y) $
120	100
155	120
160	140
180	145
210	220
250	225
110	95
150	117
85	70
258	200
111	78
319	221

1. Use the data above to find Sum of X, Sum of Y, Sum of X * Y, Sum ofX * X, Sum of Y * Y

Sum of X= 2,108 Sum of Y= 1,731 Sum of X * Y= 3,648,948

Sum of X * X= 4,443,664 Sum of Y * Y= 2,996,361

1. Use one of the formulas (given in slide on Module7, page 7). to calculate sample correlation coefficient (r). What is the degree of relationship between income and expense?

1. Check your answer in part (b) by using r function to calculate correlation coefficient cor(x,y).

1. Write five steps to test the claim that correlation coefficient is not zero. Use alpha= 5%.