Question

Data from the U.S. Federal Reserve Board on the percentage of disposable personal income required to meet consumer loan payments and mortgage payments for selected years are shown in the following table. What is the value of the correlation coefficient for this data set? (Give the answer to four decimal places.)
r =

Consumer Debt	Household Debt	Consumer Debt	Household Debt
7.89	6.22	6.25	5.73
7.90	6.14	6.09	5.95
7.65	5.96	6.32	6.09
7.60	5.84	6.98	6.28
7.48	5.82	7.37	6.09
7.50	5.86	7.52	5.78
7.36	5.80	7.85	5.82
6.57	5.80

Answer 1

The regression output is:

	r²	0.015
	r	0.1217
	Std. Error	0.181
	n	15
	k	1
	Dep. Var.	Debt
ANOVA table
Source	SS	df	MS	F	p-value
Regression	0.0064	1	0.0064	0.20	.6657
Residual	0.4268	13	0.0328
Total	0.4332	14
Regression output					confidence interval
variables	coefficients	std. error	t (df=13)	p-value	95% lower	95% upper
Intercept	5.6969
Debt	0.0344	0.0778	0.442	.6657	-0.1337	0.2025

r = 0.1217