Listed below are paired data consisting of amounts spent on advertising (in millions of dollars) and the profits (in millions of dollars). Determine if there is a significant positive linear correlation between advertising cost and profit . Use a significance level of 0.05 and round all values to 4 decimal places.Advertising CostProfit323420527625730823921102311331229Find p value.

Question
Asked Jun 20, 2019

Listed below are paired data consisting of amounts spent on advertising (in millions of dollars) and the profits (in millions of dollars). Determine if there is a significant positive linear correlation between advertising cost and profit . Use a significance level of 0.05 and round all values to 4 decimal places.

Advertising Cost Profit
3 23
4 20
5 27
6 25
7 30
8 23
9 21
10 23
11 33
12 29

Find p value.

check_circleExpert Solution
Step 1

Let r denote the linear correlation between advertising cost (x) and profit (y). The hypotheses are given below:

Null hypothesis:

H0 : r = 0

That is, the sample correlation coefficient (r) is not significantly different from zero. There is no significant positive linear relationship between advertising cost and profit.

Alternative hypothesis:

Ha : r ≠ 0

That is, the sample correlation coefficient is significantly different from zero.

There is a significant positive linear relationship between advertising cost and profit.

Step 2

Degrees of freedom:

The formula for degrees of freedom is as follows:

Df = n – 2.

The number of data values given are 10, that is n = 10.

Substitute n = 10 in the degrees of freedom formula.

Df = n – 2 = 10 – 2 = 8.

The level of significance for the test is 0.05.

Step 3

Sample correlation coefficient:

The value of the sample correlation coefficient (r) can be obtained using Excel formula.

Enter the values of advertising cost in columns A2:A11 in Excel.

Enter the values...

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour*

See Solution
*Response times may vary by subject and question
Tagged in

Math

Statistics

Other

Related Statistics Q&A

Find answers to questions asked by student like you

Show more Q&A add
question_answer

Q: An investigator wants to assess whether the use of a specific medication given to infants born prema...

A: The cohort study generally involves a group of individuals that meet a set of criteria at the study ...

question_answer

Q: A hospital reported that the normal death rate for patients with extensive burns (more than 40% of s...

A: The provided information are:

question_answer

Q: Find the minimum sample size n needed to estimate muμ for the given values of​ c, sigmaσ​, and E. c=...

A: The formula for the minimum sample size is as follows:

question_answer

Q: A recent poll by the American Automobile Club found that 74.5% of those surveyed are worried about a...

A: Hey there! Thank you for posting the question. As your question has more than 3 parts, we have solve...

question_answer

Q: A random sample of 30 binomial trials resulted in 12 success. Test the claim that the population por...

A:  Hi, since the problem posted by you contains multiple sub-parts, we are answering the first three s...

question_answer

Q: Hi. I need help with part (d) and (e) The bond behavior of reinforcing bars is an important determin...

A: (d) The error standard deviation:The formula to estimate the standard deviation (σ) of the error (ε)...

question_answer

Q: Bill Alther is a zoologist who studies Anna's hummingbird (Calypte anna).† Suppose that in a remote ...

A: (a) Level of significance for the test:Level of significance (α) defines the probability of rejectin...

question_answer

Q: Stories in the Tallest Builidings The numbers of stories in the 13 tallest buildings are for two dif...

A: Measures of variability:The measure of variability or the measures of dispersion can be measured usi...

question_answer

Q: You have recorded the height and weight of 27 people. Suppose that your data meet the assumptions of...

A: Solution:It is given that Pearson correlation coefficient r = 0.4 and the sample size n = 27.Critica...