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A consulting company is hired to investigate the relationship between average physician annual income and number of beds present at a local hospital. Assume the

  1. A consulting company is hired to investigate the relationship between average physician annual income and number of beds present at a local hospital. Assume the following table represents a SRS of hospitals.

Average Physician Annual Income($/year, X) Number of Beds (Count, Y)
127,655 698
176,526 943
134,253 713
114,534 578
116,549 498
167,547 889
149,863 769
176,546 937
149,537 776
153,649 813
126,349 678

A) Calculate basic descriptive statistics for your X and Y variables. (3 points)

B) Calculate a correlation coefficient, and interpret your result with respect to strength and direction. (2 points)

C) Calculate and correctly interpret your r2 for the data. (2 points)

D) Can we consider the relationship causal? For instance, can we claim that the higher the physician average income at a hospital, the more beds the hospital has? (1 points)

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