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In ongoing economic analyses, the federal government compares per capita incomes not only among different states but also for the same state at different
In ongoing economic analyses, the federal government compares per capita incomes not only among different states but also for the same state at different times. Typically, what the federal government finds is that "poor" states tend to stay poor and "wealthy" states tend to stay wealthy. Would we have gotten information about the 1999 per capita income for a state (denoted by y) from its 1980 per capita income (denoted by x)? The following bivariate data give the per capita income (in thousands of dollars) for a sample of fifteen states in the years 1980 and 1999 (source: U.S. Bureau of Economic Analysis, Survey of Current Business, May 2000). The data are plotted in the scatter plot in Figure 1. Also given are the products of the 1980 per capita incomes and 1999 per capita incomes for each of the fifteen states. (These products, written in the column labelled "xy," may aid in calculations.) 1980 per capita 1999 per capita income, y (in $1000s) xy income, x (in $1000s) Maryland 11.2 32.2 360.64 New York 11.1 33.9 376.29 36+ North Carolina 8.2 26.2 214.84 34- Utah 8.5 23.4 198.9 Rhode Island 9.7 29.7 288.09 New Hampshire 9.9 30.9 305.91 30- Wisconsin 10.2 27.4 279.48 28 Kansas 10.0 26.6 266 26+ Mississippi 7.1 20.5 145.55 Vermont 8.7 25.9 225.33 x Hawaii 11.5 27.8 319.7 20 Minnesota 10.3 30.6 315.18 12 13 Arkansas 7.6 22.1 167.96 New Mexico 8.4 22.1 185.64 Figure 1 Georgia 8.5 27.2 231.2 Send data to Excel Answer the following. Carry your intermediate computations to at least four decimal places, and round your answer as specified below. (If necessary, consult a list of formulas.) What is the value of the sample correlation coefficient for these data? Round your answer to at least three decimal places.
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