Question

Specify the level of significance (Type I error associated with the null hypothesis)

(NULL HYPHOTHESIS IS THAT THERE IS THAT THERE IS A CORRELATION BETWEEN PRICE AN Q SUPPLIED)

Price	Quantity supplied
14,5	7
13,4	8
12,7	6
16,4	10
21	15
13,9	11
17,3	21
12,5	10
16,7	14
22,7	20
14,5	12
12,3	10
15,6	8
20	14
14,2	8
12,6	6
18,2	12
17,3	8
14,3	7
11	6
14,5	7
15,2	8
16,2	8
14,8	7
14,3	7
11,9	6
12	6
14,1	7
17	8
18	9

Answer 1

	Price (X)	Quantity supplied (Y)	X^2	Y^2	XY
	14.5	7	210.25	49	101.5
	13.4	8	179.56	64	107.2
	12.7	6	161.29	36	76.2
	16.4	10	268.96	100	164
	21	15	441	225	315
	13.9	11	193.21	121	152.9
	17.3	21	299.29	441	363.3
	12.5	10	156.25	100	125
	16.7	14	278.89	196	233.8
	22.7	20	515.29	400	454
	14.5	12	210.25	144	174
	12.3	10	151.29	100	123
	15.6	8	243.36	64	124.8
	20	14	400	196	280
	14.2	8	201.64	64	113.6
	12.6	6	158.76	36	75.6
	18.2	12	331.24	144	218.4
	17.3	8	299.29	64	138.4
	14.3	7	204.49	49	100.1
	11	6	121	36	66
	14.5	7	210.25	49	101.5
	15.2	8	231.04	64	121.6
	16.2	8	262.44	64	129.6
	14.8	7	219.04	49	103.6
	14.3	7	204.49	49	100.1
	11.9	6	141.61	36	71.4
	12	6	144	36	72
	14.1	7	198.81	49	98.7
	17	8	289	64	136
	18	9	324	81	162
Total	459.1	286	7249.99	3170	4603.3
Mean	15.30333	9.53333333
Var	7.474322	14.7822222
SD	2.733921	3.84476556
cov(x,y)	7.551556
correlation	0.718424=r

Here we want to test, Vs

Under $H_0$ Test statistic is,

$T=rac{rsqrt{n-2}}{sqrt{1-r^2}}$

T=

5.46507957 p-value= 7.7906E-06 p-value<alpha Reject Ho at 5% level

i.e. There is significant correlation between Price and quantity