Question

Every Easter, an average of 960,000 hams and 90,000 bottles of wine are sold per state. Importantly, the population variance/standard deviation is not known. Below is the number of hams and bottles of wine sold in each of the ten northeast states.

State	# of Hams	# Bottles of Wine
Maine	199,700	45,900
Vermont	93,800	25,500
New Hampshire	200,200	60,000
Massachusetts	1,020,100	294,250
Rhode Island	200,000	74,000
Connecticut	525,100	111,250
New York	2,962,500	780,600
Pennsylvania	1,920,200	480,000
New Jersey	1,341,600	355,400
Delaware	142,500	105,500

Use the above data to answer the following question

8. What is the strength and direction of the relationship between the number of hams and bottles of wine sold in the American northwest?

9. What is r-crit and r-obt for the hypothesis test stated in question #8? Is the hypothesis test significant or insignificant? Would you reject or fail to reject the null hypothesis assuming an alpha-level of 0.05?

10. If you were to use this relationship (and linear regression) to predict how many bottles of wine will be sold in a northeast state in 2018 given the number of hams sold in that state, how much more accurate would you be (in percent) compared to if you did not use the relationship to make this prediction (round to two decimal places)?

Answer 1

8)

The direction is positive and the sttrength is Strong.

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9)

x= #of hams

y= # bottles of wine

Sample correlation coefficient=

The null hypotheis

Alternative hypothesis  

where is population correlation coefficient

The level of significance=0.05

the test statistics=r_obt=

r_crit=t_0.025;8=2.262

As r_obt>r _crit we reject null hypothesis,and the test is significant.

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10)

r²=0.994²=0.988

So,98.80% will be more accurate,

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