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Pennsylvania Refining Company is studying the relationship between the pump price of gasoline and the number...

Pennsylvania Refining Company is studying the relationship between the pump price of gasoline and the number of gallons sold. For a sample of 13 stations last Tuesday, the correlation was 0.73. Can the company conclude that the correlation is positive?

1. State the decision rule for 0.02 significance level. --> not equal to t > 2.718

2. Compute the value of the test statistic.

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Answer #1

1)

for positive correlation:

decision rule for 0.02 significance level. --> t>2.328

2)

t= r*(√(n-2)/(1-r2)) = 3.543
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