Insurance: Sales Big Rock Insurance Company did a study of per capita income and volume of insurance sales in eight Midwest cities. The volume of sales in each city was ranked, with 1 being the largest volume.

The per capita income was rounded to the nearest thousand dollars.

City 1 2 3 4 5 6 7 8 Rank of insurance sales volume 6 7 1 8 3 2 5 4 Per capita income in $1000 17 18 19 11 16 20 15 19

(i) Using a rank of 1 for the highest per capita income, make a table of ranks to be used for a Spearman rank correlation test.

(ii) Using a 0.01 level of significance, test the claim that there is a monotone relation (either way)

between rank of sales volume and rank of per capita income.

AppendixLO1