Statistics Homework Solutions
Problem
#7088

Statistics - Correlation Coefficient and Hypothesis Testing

Please provide step by step instructions on how to solve the following problems using actual numbers provided. Thanks

1)  A student representative claims that 60% of the students favor a move to division 1. A random sample of 250 students were selected and 140 of them indicated they favored a move to division 1.
a. Perform the appropriate test of hypothesis to test the representative's claim. Use alpha=.05.
b. Write out each step in determining the p-value for the test in part one.


2)  The manager of a movie rental store was interested in examining the relationship between the weekly take-home pay for a family and the amount that family spends weekly on recreational activites. The following output was generated using Minitab:
Covariances

takehome 4413.84
recreation 2419.64 1364.29

Let 2=weekly take-home pay and y=amount spent weekly on recreational activities
a. identify s of x squared (=4413.84)
b. s of xy (=1364.29)
c. s of y squared (=2419.64)
d. calculate the correlation between weekly take-home pay and amount spent weeky on recreational activities.
e. Interpret the correlation coefficient found in part d.

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