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Pennsylvania Refining Company is studying the relationship between the pump price of gasoline and the number...

Pennsylvania Refining Company is studying the relationship between the pump price of gasoline and the number of gallons sold. For a sample of 16 stations last Tuesday, the correlation was 0.57.

  1. State the decision rule for 0.050 significance level. (Round your answer to 3 decimal places.)

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

  1. Can we conclude that the correlation in the population is greater than zero? Use the 0.050 significance level.

Math   Statistics-And-Probability   
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Answer #1

Given : Sample size=n=16

Sample correlation=r=0.57

Significance level=

Claim : the correlation in the population is greater than zero

Hypothesis : VS  

1) Critical value : ; From t-table

Decision rule : If ; then reject the null hypothesis , accept otherwise

2) The test statistic is ,

3) Decision : Here ,

Therefore , reject the null hypothesis

Conclusion : Hence , there is sufficient evidence to support the claim that the correlation in the population is greater than zero.

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