2. A Rural Bank is studying the relationship between the mean account balance for individual accounts and the number of transactions per month. A sample of 8 accounts revealed: 1 2 3 4 5 6 7 8 Customer Mean Balance (in thousand pesos) No. of Transactions 27 11 32 2 50 5 24 9 53 7 10 2 16 4 15 10 Find the coefficient of correlation. Determine at 0.01 significance level whether the correlation is not equal to zero.

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COMPUTING FOR THE CORRELATION COEFFICIENT

Show the following statement:

  • State the hypotheses
  • Level of significance
  • t–test for significance of correlation
    coefficient
  • Decision rule
  • Conclusion
2. A Rural Bank is studying the relationship between the mean account balance for individual
accounts and the number of transactions per month. A sample of 8 accounts revealed:
2
3
5
6
Customer 1
Mean
Balance (in
thousand
pesos)
No. of
Transactions
27
11
32
2
50
5
4
24
9
53
7
10
2
7
16
4
8
15
10
Find the coefficient of correlation. Determine at 0.01 significance level whether the correlation is
not equal to zero.
Transcribed Image Text:2. A Rural Bank is studying the relationship between the mean account balance for individual accounts and the number of transactions per month. A sample of 8 accounts revealed: 2 3 5 6 Customer 1 Mean Balance (in thousand pesos) No. of Transactions 27 11 32 2 50 5 4 24 9 53 7 10 2 7 16 4 8 15 10 Find the coefficient of correlation. Determine at 0.01 significance level whether the correlation is not equal to zero.
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