Metropolitan areas with many corporate headquarters are finding it easier to transition from a manufacturing economy to a service economy through job growth in small companies and subsidiaries that service the corporate parent. James 0. Wheeler of the Univers~ty of Georgia studied the relationship between the number of corporate headquarters in eleven metropolltan areas and the number of subsidiaries located there (Gro~cth and Change, Spring 1988). He hypothesized that there would be a positive relationship between the variable5

a. Calculate Spearman's rank correlation coefficient for the data in the table above. What does it indicate about Wheeler's hypothesis?

b. To conduct a formal test of Wheeler's hypothesis using Spearman's rank correlation coefficient, certain assumptions must hold. What are they? Do they appear to hold? Explain.