Question

The amounts of 6 restaurant bills and the corresponding amounts of the tips are given in the below.

bill	43.58	49.72	32.98	106.27	52.44	97.34
tip	5.5	5.28	4.5	16	7	16

a. The regression equation is y^=___+___x.

b. If the amount of the bill is $45, the best prediction for the amount of the tip is

c. coefficient of correlation is r=

d. Test no correlation hypothesis using a 0.05 confidence level :
Do we reject or accept null hypothesis of no correlation?

e. whats the critical value in the above test?

Answer 1

d)

Since, we know that

Degree of freedom (df) can be found out by n-2, where n is number of data points

df = n-2

df = 6-2

df = 4

Since, r = 0.9871 is greater than 0.707. Therefore, r is significant

We can reject the null hypothesis

e)

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