State Debt and Per Capita Tax An economics student wishes to see if there is a relationship between the amount of state debt per capita and the amount of tax per capita at the state level. Based on the following data, can she or he conclude that per capita state debt and per capita state taxes are related? Both amounts are in dollars and represent five randomly selected states. Per capita debt x 1905 1948 1535 3094 1910 Per capita tax y 1294 1455 4345 1413 2176 Send data to Excel Part 1 of 5 Your Answer is correct (a) Draw the scatter plot for the variables. State Debt and Per Capita Tax Tax y 500 1000 1500 2000 2500 3000 3500 4000 4500 x 500 1000 1500 2000 2500 3000 3500 4000 0 Debt Part: 1 / 5 1 of 5 Parts Complete Part 2 of 5 (b) Compute the value of the correlation coefficient. Round your answer to at least three decimal places. r=?
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.
State Debt and Per Capita Tax An economics student wishes to see if there is a relationship between the amount of state debt per capita and the amount of tax per capita at the state level. Based on the following data, can she or he conclude that per capita state debt and per capita state taxes are related? Both amounts are in dollars and represent five randomly selected states.
| Per capita debt
x
|
1905
|
1948
|
1535
|
3094
|
1910
|
|---|---|---|---|---|---|
| Per capita tax
y
|
1294
|
1455
|
4345
|
1413
|
2176
|
(a) Draw the
| State Debt and Per Capita Tax | |
|
Tax
|
y
500
1000
1500
2000
2500
3000
3500
4000
4500
x
500
1000
1500
2000
2500
3000
3500
4000
0
|
| Debt |
(b) Compute the value of the
|
r=?
|
|
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