Listed below are amounts of bills for dinner and the amounts of the tips that were left. Construct a scatterplot, find the value of the linear correlation coefficient r, and find the P-value of r. Determine whether there is sufficient evidence to support a claim of linear correlation between the two variables. Use a significance level of a = 0.01. If everyone were to tip with the same percentage, what should be the value of r? Bill (dollars) Tip (dollars) 30.46 48.91 3.59 8.21 90.03 93.68 64.35 104.74 O 8.36 14.33 12.70 17,38
Correlation
Correlation defines a relationship between two independent variables. It tells the degree to which variables move in relation to each other. When two sets of data are related to each other, there is a correlation between them.
Linear Correlation
A correlation is used to determine the relationships between numerical and categorical variables. In other words, it is an indicator of how things are connected to one another. The correlation analysis is the study of how variables are related.
Regression Analysis
Regression analysis is a statistical method in which it estimates the relationship between a dependent variable and one or more independent variable. In simple terms dependent variable is called as outcome variable and independent variable is called as predictors. Regression analysis is one of the methods to find the trends in data. The independent variable used in Regression analysis is named Predictor variable. It offers data of an associated dependent variable regarding a particular outcome.
 alt="### Correlation Between Bills and Tips
#### Problem Statement
Listed below are amounts of bills for dinner and the amounts of the tips that were left. Construct a scatter plot, find the value of the linear correlation coefficient \( r \), and find the P-value of \( r \). Determine whether there is sufficient evidence to support a claim of linear correlation between the two variables. Use a significance level of \( \alpha = 0.01 \). If everyone were to tip with the same percentage, what should be the value of \( r \)?
#### Data
| Bill (dollars) | 30.46 | 48.91 | 90.03 | 93.68 | 64.35 | 104.74 |
|----------------|-------|-------|-------|-------|-------|--------|
| Tip (dollars) | 3.59 | 8.21 | 8.36 | 14.33 | 12.70 | 17.38 |
#### Instructions
1. **Construct a Scatter Plot:**
- Plot the given bill amounts on the X-axis.
- Plot the corresponding tip amounts on the Y-axis.
2. **Calculate the Linear Correlation Coefficient (\( r \)):**
- Use statistical software or a calculator formula for determining \( r \).
3. **Find the P-value of \( r \):**
- Again, utilize statistical software or standard statistical tables to determine the P-value for the given \( r \).
4. **Interpret the Results:**
- Compare the P-value with the significance level \( \alpha = 0.01 \).
- Determine if there is sufficient evidence to support a claim of linear correlation between the bill amounts and the tip amounts.
#### Hypothetical Scenario
- If everyone were to tip with the same percentage, the data points on the scatter plot would lie on a straight line passing through the origin. This would result in a perfect positive linear relationship, and the value of \( r \) should be 1.
### Explanation of Graphs or Diagrams
- **Scatter Plot:** A graphical representation where each pair of bill and tip amounts is a point plotted on the graph. The X-axis represents the bill amounts, and the Y-axis represents the tip amounts. The patterns and distribution of these points help visualize the relationship between the bill and tip amounts.
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