Pennsylvania Refining Company is studying the relationship between the pump pric
ID: 3154074 • Letter: P
Question
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 0.62.
At the 0.05 significance level, is the correlation in the population greater than zero? (Round your answer to 3 decimal places.)
The test statistic is .
Decision: (Click to select)RejectDo not reject H0: 0
At the 0.05 significance level, is the correlation in the population greater than zero? (Round your answer to 3 decimal places.)
Explanation / Answer
As
t = r*sqrt(n-2)/sqrt(1-r^2)
Then as n = 16, r = 0.62,
t = 0.62*sqrt(16-2)/sqrt(1-0.62^2)
t = 2.956694148 [ANSWER, TEST STATISTIC]
*********************************
Using technology, the P value of this t, at df = n - 2 = 14, one tailed,
Pvalue = 0.005203534
As this is small, then we REJECT HO: rho <= 0. [ANSWER]
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