Question

A realtor studies the relationship between the size of a house (in square feet) and the property taxes owed by the owner. He collects the following data on six homes in an affluent suburb 60 miles outside of New York City. Use Table 2.

	Square Feet	Property Taxes ($)
Home 1	4,015	12,522
Home 2	2,798	9,332
Home 3	5,184	22,706
Home 4	2,259	6,487
Home 5	1,531	5,201
Home 6	3,301	7,878

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a.	Interpret the scatterplot.
	The scatterplot indicates that there is a positive relationship between size of house and property taxes. The scatterplot indicates that there is a negative relationship between size of house and property taxes. The scatterplot indicates that there is no relationship between size of house and property taxes.

b.	Calculate sxy and rxy. (Round intermediate calculations to at least 4 decimal places and final answers to 2 decimal places.)

sxy
rxy

c.	Specify the competing hypotheses in order to determine whether the population correlation between the size of a house and property taxes differs from zero.
	H0: ρxy = 0; HA: ρxy ≠ 0 H0: ρxy ≥ 0; HA: ρxy < 0 H0: ρxy ≤ 0; HA: ρxy > 0

d-1.	Calculate the value of the test statistic. (Round intermediate calculations to at least 4 decimal places and final answer to 2 decimal places.)

Test statistic

d-2.	Approximate the p-value.
	p-value < 0.010 0.010  p-value < 0.025 0.025  p-value < 0.050 0.050  p-value < 0.100 p-value  0.100

e.	At the 1% significance level, what is the conclusion to the test?
	Reject H0; we can state size and property taxes are correlated. Reject H0; we cannot state size and property taxes are correlated. Do not reject H0; we can state size and property taxes are correlated. Do not reject H0; we cannot state size and property taxes are correlated.

Answer 1

( Q ) The Scatter plot indicates beliween size of house that there is a positive relationship and propertý taxes. (b) Szy Exiyi - na MEXi Yi (Exi) (yi) sry Jo nExit - (Ixi)² ney? - (E4;)² from the data, we calculate, Σ - 19088 Ey = 64126, x = 3181.33 59 - 846 64 3548 , 9 - 10 6 81.67 52-69166528 Exy n - 6 - 242716812, (6x3181.339 x 10687.67) 242 716812 - Sxy 3870780.79 3870780.79 Say

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