# SalesPrice (\$)CityMiamiMcKinneyNewberg1001.30901.60901.80402.00Prescott38TacomaSan Jose2.40322.902. Assume that a researcher is interested in finding out the relationship betweenstandardized test scores and household income. Seven participants have beenrandomly selected and their ACT Composite score and household income arereported. By performing a test, can you conclude that there is a significantrelationship between household income and ACT Composite score? State your nulland alternative hypotheses. Please show all of the required steps. Use the data inthe table below. Assume a = .05pointsАСTIncome (inthousands)CompositeScore16301821182421592355251052635

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Step 1

Let r denote the linear correlation between income (x) and ACT composite score (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 income and ACT composite score.

Alternative hypothesis:

Ha: r ≠ 0

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

There is a significant positive linear relationship between income and ACT composite score.

Degrees of freedom:

The formula for degrees of freedom is as follows:

Df = n – 2.

The number of data values given are 7, that is n = 7.

Substitute n = 7 in the degrees of freedom formula.

Df = n &ndas...

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