Question

The Airline Passenger Association studied the relationship between the number of passengers on a particular flight and the cost of the flight. It seems logical that more passengers on the flight will result in more weight and more luggage, which in turn will result in higher fuel costs. For a sample of 9 flights, the correlation between the number of passengers and total fuel cost was 0.734.

1.	State the decision rule for 0.010 significance level: H0: ρ ≤ 0; H1: ρ > 0 (Round your answer to 3 decimal places.)

Reject H0 if t >

2.	Compute the value of the test statistic. (Round your answer to 3 decimal places.)

Value of the test statistic

3.	Can we conclude that the correlation in the population is greater than zero? Use the 0.010 significance level

  (Click to select)RejectDo not reject H₀ . It is (Click to select)reasonablenot reasonable to conclude that there is positive association in the
  population between the two variables.

Answer 1

For the given problem the critical t value is 2.998 and the test statistic value is 2.859. So the test statistics value less than that of critical value, hence we do not reject the Ho.