Question

The following table shows the selling​ prices, in thousands of​ dollars, and the square footages of five randomly selected houses recently sold by a real estate company. The data have a sample correlation​ coefficient, rounded to three decimal​ places, of 0.618. Using alpha=0.01 and the data given​ below, test the significance of the population correlation coefficient between a​ house's selling price and its square footage. What conclusions can you​ draw?

Selling Price: $255 $193 $255 $160 $247

Sqaure Foot: 2769 1877 2160 2127 2377

What is the test statistic? T=_____

What is the p-value? P=____

what conclustion can we draw based on the null and alternative hypothesis h0: p=0 h1: p is not = 0.

Answer 1

from above test statistic t=1.363

p value =0.266

as p value is higher than 0.01 level we can not reject null hypothesis

we can not conclude that p is not equal to 0