Perform the following steps. a. Draw the scalier plot for the variables.
b. Compute the value of the correlation coefficient.
c. Stale the hypotheses.
d. Test the significance of the correlation coefficient at α = 0.05. using Table I.
e. Give a brief explanation of the type of relationship.
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. (The information in this exercise will be used for Exercises 16 and 37 in Section 10–2 and Exercises 18 and 22 in Section 10–3.)
Per capita debt x 1924 907 1445 1608 661
Per capita tax y 1685 1838 1734 1842 1317