Question

14. 10 pts. Seven randomly selected houses have the following selling prices (in thousands of Philippine pesos) and floor areas (in square ft.) Selling price: 258, 191, 253, 168, 249, 245, 282 . Floor area: 2730, 1860, 2140, 2180, 2310, 2450, 2920

Answer 1

Solution: Here we want to test

Ho: Correlation is not significant i.e Ho: r=0;

Vs H1: Correlation is significant i.e. H1: r not equal to 0.

We go through the Testing of hypothesis procedure as in following procedure and Compare that with the Critical value

Let X: Spelling Price Y: Floor Area Sr.No. XY 2730 70434066564 7452900 35526036481 3459600 214054142064009 4579600 2180 366240 28224 4752400 249 2310 575190620015336100 2450 60025060025 6002500 2920 823440 795248526400 Total 1646 16590 3966140 396828 40109500 258 191 253 2 4 5 6 245 282

Page 2 ー-7x3366140-1646-x16590 4,55840 615848 709 eva he test statistic 1S

Page 3 n No え 0.67 24 246IS AL US Thus nclusun Atwe not hcve Sufficicnt fvidance to suppost the cla'm that cozdelem Coesticient be+uween Sellmg Ptice (x)4 Floot adeais significant