Question

Application Exercise:
A neighborhood council is interested in the family income and medical care expenditures of its community. In particular, it is believed that more medical care expenditures is related to lower income. Below are family income (per 1,000 dollars) and medical care expenditure (per 100 dollars) data from a random sample of households in the community. What can be concluded with an α of 0.05?

family income	medical care
8 5 9 11 14 16 17 18 18 21	21 16 18 13 12 15 7 8 2 8

a) What is the appropriate statistic?
---Select--- na Correlation Slope Chi-Square
Compute the statistic selected in a):  

b) Obtain/compute the appropriate values to make a decision about H₀.
(Hint: Make sure to write down the null and alternative hypotheses to help solve the problem.)
critical value =  ; test statistic =  
Decision:  ---Select--- Reject H0 Fail to reject H0

c) Compute the corresponding effect size(s) and indicate magnitude(s).
If not appropriate, input and/or select "na" below.
effect size =  ;   ---Select--- na trivial effect small effect medium effect large effect

d) Make an interpretation based on the results.

There was a significant positive relationship between medical care expenditures and family income.

There was a significant negative relationship between medical care expenditures and family income.     

There was no significant relationship between medical care expenditures and family income.

Answer 1