Question

Pennsylvania Refining Company is studying the relationship between the pump price of gasoline and the number of gallons sold. For a sample of 16 stations last Tuesday, the correlation was 0.78.

At the 0.05 significance level, is the correlation in the population greater than zero? (Round your answer to 3 decimal places.)

The test statistic is .

Answer 1

Given that, Sample size , 1 = 16 Sample oelation, Signiticance level 0.05 We want o test VS. where is the population correlation coetkicienl test statistic is and the stan dardi xed t The Statistic tor 0-2 I6-2 =0.18 (o.18 .G64 0.05 level ob signibicane ,dor one tailed t test 14 digees ob tree do m , the obtained table cheosing with n- 2 valu (standard t table) 15 14,0.05) = 1. T61 HEYe t =4.664> 4 0D5 G| eje it the null hypothesis ( H,). The alter native positive relationship between pump price o gasoline and the number ob gallons sold Hence w hypothesis that there is a acepted