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 1645 2781 1904 1791 3418 Per capita tax y 2423 3890 2129 2095 2214 (a) Compute the value of the correlation coefficient. Round your answer to at least three decimal places. r= (b) State the hypotheses. H0 : H1: (c) Test the significance of the correlation coefficient at α=0.05 , using The Critical Values for the PPMC Table. Critical values: ± ▼(Choose one) the null hypothesis.
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
|
1645
|
2781
|
1904
|
1791
|
3418
|
|---|---|---|---|---|---|
| Per capita tax
y
|
2423
|
3890
|
2129
|
2095
|
2214
|
(a) Compute the value of the
r=
(b) State the hypotheses.
|
(c) Test the significance of the correlation coefficient at α=0.05 , using The Critical Values for the PPMC Table.
|
Critical values: ± ▼(Choose one) the null hypothesis. |
|
(d) Give a brief explanation of the type of relationship.
|
There ▼(Choose one) sufficient evidence to conclude that a significant linear relationship exists between the number of reported cases. |
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
