1.A polling organization collected data on a sample of 60 registered voters regarding a tax on the market value of equity transactions as one remedy for the budget deficit.

Opinion about Market TaxEducationHigh School College Grad. MBA

Favorable1550

Undecided 1082

Unfavorable 0 218

a. Compute gamma for the table.

b. Compute tau b or tau c for the same data.

c. What accounts for the differences?

d. Decide which is more suitable for these data.

2. For the following data,

XY

255

197

1712

1423

1220

925

826

728

320

a. Calculate the correlation between X and Y.

b. Interpret the sign of the correlation.

c. Interpret the square of the correlation.

d. Plot the least-squares line.

e. Test for a linear relationship:

(1) Beta1 = 0.

(2) r = 0.

3) An F test.