The following data show the household expenditure, income, number of adults in each of 17 households and whether or not the family contains at least one person who smokes. Family Household expenditure (X) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 26.17 19.49 17.87 16.90 4.21 32.08 30.19 22.62 9.86 13.32 9.24 47.35 26.80 33.44 21.41 16.06 24.98 a. Draw an XY plot of the data and comment. Income (Y) Adult 2 2 1 2 1 2 2 2 1 2 1 4 487 574 439 367 299 743 433 547 303 370 299 531 506 613 472 253 374 +223 1 2 Smoker 0 0 1 0 0 1 0 0 0 1 1 1 1 0 0 1 0 b. From the chart, would you expect the line of best fit to slope up or down? In theory, which way should it slope? c. Calculate the correlation coefficient between household spending and income.

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The following data show the household expenditure, income, number of adults in each of 17
households and whether or not the family contains at least one person who smokes.
Family Household expenditure (X) Income (Y) Adult
1
487
2
2
574
3
439
4
367
5
299
6
743
7
433
8
547
9
10
11
12
13
14
15
16
17
26.17
19.49
17.87
16.90
4.21
32.08
30.19
22.62
9.86
13.32
9.24
47.35
26.80
33.44
21.41
16.06
24.98
a. Draw an XY plot of the data and comment.
303
370
299
531
506
613
472
253
374
2
1
2
1
2
2
2
1
2
1
4
2
2
3
1
2
Smoker
0
0
1
0
0
1
0
0
0
1
1
1
1
0
0
1
0
b. From the chart, would you expect the line of best fit to slope up or down? In theory,
which way should it slope?
c. Calculate the correlation coefficient between household spending and income.
d. Is the coefficient significantly different from zero? What is the implication of the
result?
Transcribed Image Text:The following data show the household expenditure, income, number of adults in each of 17 households and whether or not the family contains at least one person who smokes. Family Household expenditure (X) Income (Y) Adult 1 487 2 2 574 3 439 4 367 5 299 6 743 7 433 8 547 9 10 11 12 13 14 15 16 17 26.17 19.49 17.87 16.90 4.21 32.08 30.19 22.62 9.86 13.32 9.24 47.35 26.80 33.44 21.41 16.06 24.98 a. Draw an XY plot of the data and comment. 303 370 299 531 506 613 472 253 374 2 1 2 1 2 2 2 1 2 1 4 2 2 3 1 2 Smoker 0 0 1 0 0 1 0 0 0 1 1 1 1 0 0 1 0 b. From the chart, would you expect the line of best fit to slope up or down? In theory, which way should it slope? c. Calculate the correlation coefficient between household spending and income. d. Is the coefficient significantly different from zero? What is the implication of the result?
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