B. Simple Correlation The monthly income of a person (y) is related to the age of the person(x). Along with higher age of a person goes also higher monthly income. But while there is a positive correlation between age and income, we cannot say that age causes the income of a person. Further, we cannot say the income of a person depends on that person's age. Given the sample data below: (show your solutions) a. Solve for the correlation r b. Test the significance of r Case # Y (Income) in thousands (Age) in 1 6. 28 2 18 44 20 62 4 12 32 15 27 6. 25 55 10 24 12 26 17 35 10 16 37 Total 154 370

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B. Simple Correlation
The monthly income of a person (y) is related to the age of the person(x). Along with
higher age of a person goes also higher monthly income. But while there is a positive
correlation between age and income, we cannot say that age causes the income of a
person. Further, we cannot say the income of a person depends on that person's age.
Given the sample data below: (show your solutions)
a. Solve for the correlation r
b. Test the significance of r
Case #
Y
(Income) in
thousands
(Age) in
years
1
9.
28
18
44
3
20
62
4
12
32
15
27
6.
25
55
10
24
26
12
9.
17
35
10
16
37
Total
154
370
Transcribed Image Text:B. Simple Correlation The monthly income of a person (y) is related to the age of the person(x). Along with higher age of a person goes also higher monthly income. But while there is a positive correlation between age and income, we cannot say that age causes the income of a person. Further, we cannot say the income of a person depends on that person's age. Given the sample data below: (show your solutions) a. Solve for the correlation r b. Test the significance of r Case # Y (Income) in thousands (Age) in years 1 9. 28 18 44 3 20 62 4 12 32 15 27 6. 25 55 10 24 26 12 9. 17 35 10 16 37 Total 154 370
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