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For each exercise, decide at 10%significance level, whether the data provide sufficient evidence to reject the null hypothesis in favor of alternate hypothesis.

Ha:ÒÏ≠0

Short Answer

Expert verified

We reject the null hypothesis Ha:ÒÏ≠0, the variables are not linearly correlated.

Step by step solution

01

Step 1. Correlation Coefficient 

Sample correlation coefficient is calculated by

r=∑zxzy/( n-1) 

where, zxn=(xn-xmean)/standarddeviationand same for zyn

So,r=-0.6325

02

Step 2. Hypothesis Testing 

r≠0for sample needs to be tested using hypothesis testing, to ensure that the population correlation parameterÒÏ(rho)≠0

t=r/(1-r2) /(n-2)=-0.6325/0.599/3=-0.6325/0.4468t=-1.415

As tvalue is smaller and pvalue is greater at two sided 0.10significance level, so we accept the null hypothesis[H0:ÒÏ=0]

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