Listed below are amounts of court income and salaries paid to the town justices. All amounts are in thousands of dollars. Construct a scatterplot, find the value of the linear correlation coefficient r, and find the P-value using α=0.05. Is there sufficient evidence to conclude that there is a linear correlation between court incomes and justice salaries? Based on the results, does it appear that justices might profit by levying larger fines?
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.
![# Understanding P-Values and Hypothesis Testing
### The P-value is [ ].
*(Round to three decimal places as needed.)*
### Explanation:
- The P-value is compared to the significance level (α = 0.05) to determine whether there is sufficient evidence to support the claim of a linear correlation between court incomes and justice salaries.
### Decision Rule:
- **If the P-value is less than the significance level of 0.05**, there is sufficient evidence to support the claim.
- **If the P-value is greater than the significance level of 0.05**, there is not sufficient evidence to support the claim.
### Question:
Based on the results, does it appear that justices might profit by levying larger fines?
### Options:
- **A.** It appears that justices profit the same despite the amount of the fines.
- **B.** It does appear that justices might profit by issuing smaller fines.
- **C.** It does not appear that justices might profit by levying larger fines.
- **D.** It does appear that justices might profit by levying larger fines.
### Evaluation:
Select the appropriate option based on the comparison of the P-value with the significance level.
*Note: Ensure to enter the correct P-value rounded to three decimal places in the designated field before proceeding with the analysis.*](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1f6903cd-1749-436e-bb2b-87f8ab4fbb51%2Fdbfd5cb4-2772-4d52-9e17-3e0d47e1ad6e%2Fnvu1td6_processed.png&w=3840&q=75)
![**Title: Analysis of Correlation Between Court Income and Justice Salaries**
**Text:**
Listed below are amounts of court income and salaries paid to the town justices. All amounts are in thousands of dollars. Construct a scatterplot, find the value of the linear correlation coefficient \( r \), and find the P-value using \( \alpha = 0.05 \). Is there sufficient evidence to conclude that there is a linear correlation between court incomes and justice salaries? Based on the results, does it appear that justices might profit by levying larger fines?
| Court Income | 66.0 | 403.0 | 1567.0 | 1131.0 | 272.0 | 254.0 | 112.0 | 156.0 | 33.0 |
|--------------|------|-------|--------|--------|-------|-------|-------|-------|-------|
| Justice Salary | 30 | 45 | 92 | 56 | 45 | 61 | 25 | 26 | 18 |
**What are the null and alternative hypotheses?**
- A. \( H_0: \rho = 0 \)
\( H_1: \rho > 0 \)
- B. \( H_0: \rho = 0 \)
\( H_1: \rho \neq 0 \)
- C. \( H_0: \rho \neq 0 \)
\( H_1: \rho = 0 \)
- D. \( H_0: \rho = 0 \)
\( H_1: \rho < 0 \)
**Construct a scatterplot. Choose the correct graph below.**
- **Option A:**
- Depicts scattered points suggesting a weak positive relationship between court income and justice salary.
- **Option B:**
- Points show some clustering with a visible positive trend.
- **Option C:**
- Displays scattered points without a clear pattern, suggesting no strong relationship.
- **Option D:**
- Shows points scattered with a potential weak positive trend.
**The linear correlation coefficient is \( r = \) \_\_\_.**
*(Round to three decimal places as needed.)*
**The test statistic is \( t = \) \_\_\_.**
*(Round to three decimal](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1f6903cd-1749-436e-bb2b-87f8ab4fbb51%2Fdbfd5cb4-2772-4d52-9e17-3e0d47e1ad6e%2Ffqnqted_processed.png&w=3840&q=75)
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