A random sample of 7 countries gave the following figures for X = annual per capita income and Y = urbanization rate (percentage of people living in urban area): Country X (US dollars) Y (%) 1 3500 20 2 2700 24 3 2100 16 4 2400 19 5 3000 26 6 2000 19 7 1900 17 Calculate the correlation coefficient for the sample. Explain the results At the 5% significant level, test whether per capita income and urbanization rate are unrelated.

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A random sample of 7 countries gave the following figures for X = annual per capita income and Y = urbanization rate (percentage of people living in urban area):

Country

X (US dollars)

Y (%)

1 3500 20
2 2700 24
3 2100 16
4 2400 19
5 3000 26
6 2000 19
7 1900 17
  1. Calculate the correlation coefficient for the sample. Explain the results
  2. At the 5% significant level, test whether per capita income and urbanization rate are unrelated.
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