To best answer our original question, it might make the most sense to test for significant correlation between income and drawn nickel size. Incomes (in thousands of $) are shown for each of the 5 samples below:

Income (thousands of $) | Coin size (mm)

12 19

9 25

11 20

9 20

17 20

You can copy the data into Excel by highlighting the data, right-clicking and selecting Copy, then opening Excel, clicking on a blank cell, and selecting Paste from the Edit menu.

Test the claim that there is significant correlation at the0.01significance level. Retain at least 3 decimals on all values.

a) If we useL to denote the low income group andH

to denote the high income group, identify the correct alternative hypothesis.

• H₁:0
• H1:r 0
• H1:=0
• H1:pLpH
• H1:0

b) Ther test statistic value is:

Hint: You may find it more convenient to use Excel's CORREL, SLOPE, and INTERCEPT functions rather than your calculator

c) The critical value is:

If your sample size falls between table values, use the smaller sample size

d) Based on this, we

• RejectH₀
• Fail to rejectH₀

e) Which means

• There is not sufficient evidence to support the claim
• The sample data supports the claim
• There is not sufficient evidence to warrant rejection of the claim
• There is sufficient evidence to warrant rejection of the claim

f) The regression equation (in terms of income x) is:

y=