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It is well known that housing prices have been rising drastically in metropolitan areas and that many people are having a difficult time finding affordable
It is well known that housing prices have been rising drastically in metropolitan areas and that many people are having a difficult time finding affordable housing. You hypothesize that the rise in housing prices is positively associated with homelessness. You sampled 30 metropolitan areas in the U.S. and found that the correlation between housing prices (in $) and homelessness (rate per 100,000 residents) was r = .561. Conduct a hypothesis test to see if this correlation is statistically significant at the .05 level. Follow all steps of hypothesis testing and provide a full interpretation of the correlation coefficient. Answer each of the following bullet points in one or two sentences each. A. State your research and null hypotheses (3 pts) B. State the test you are running (2 pts) C. State your critical value (5 pts) D. Calculate your sample value (6 pts) E. Based on this information, interpret your conclusion in context of the null hypothesis, including the strength and direction of the relationship, if applicable (4 pts)
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