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Example 7: Use a critical value method to conduct a formal hypothesis test of the claim that there is a linear correlation between the cost of pizza and the subway fare. Table 10-2 Costs of a Slice of Pizza and Subway Fare (in dollars) Cost of Pizza Subway Fane 015 3 100 125 175200 015 0.35 100 1.55 150 2.00 Table 10-3 Calculatingr with Formula 10-1 015 015 0 35 tco 0225 1225 10000 0.0225 00225 01225 100 10000 10000 8225 22500 150 200 3 0625 2.00 (a) What are the hypotheses for the test? (b) Find the test statistic r (c) Find the critical values and interpret the critical values. (use Method 1) (d) Conclusion.
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