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State Debt and Per Capita Tax An economics student wishes to see if there is a relationship between the amount of state debt per capita and the amount of tax per capita at the state level. Based on the following data, can she or he conclude that per capita state debt and per capita state taxes are related? Both amounts are in dollars and represent five randomly selected states.
Per capita debt
x
|
1645
|
2781
|
1904
|
1791
|
3418
|
---|---|---|---|---|---|
Per capita tax
y
|
2423
|
3890
|
2129
|
2095
|
2214
|
(a) Compute the value of the
r=
(b) State the hypotheses.
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(c) Test the significance of the correlation coefficient at α=0.05 , using The Critical Values for the PPMC Table.
Critical values: ± ▼(Choose one) the null hypothesis. |
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(d) Give a brief explanation of the type of relationship.
There ▼(Choose one) sufficient evidence to conclude that a significant linear relationship exists between the number of reported cases. |
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