The table below contains the value of the house and the amount of rental income in a year that the house brings in ("Capital and rental," 2013). Table: Data of House Value versus Rental Value Rental Value Rental Value Rental Value Rental 81000 6656 77000 4576 75000 7280 67500 6864 95000 7904 94000 8736 90000 6240 85000 7072 121000 12064 115000 7904 110000 7072 104000 7904 135000 8320 130000 9776 126000 6240 125000 7904 145000 8320 140000 9568 140000 9152 135000 7488 165000 13312 165000 8528 155000 7488 148000 8320 178000 11856 174000 10400 170000 9568 170000 12688 200000 12272 200000 10608 194000 11232 190000 8320 214000 8528 208000 10400 200000 10400 200000 8320 240000 10192 240000 12064 240000 11648 225000 12480 289000 11648 270000 12896 262000 10192 244500 11232 325000 12480 310000 12480 303000 12272 300000 12480 Test at the 5% level for a positive correlation between house value and rental amount. (vii) Select the statement that most correctly interprets the result of this test: A. The result is statistically significant at .05 level of significance. Evidence supports the claim that there is a positive correlation between house value and rental amount. B. The result is statistically significant at .05 level of significance. There is not enough evidence to show that there is a positive correlation between house value and rental amount. C. The result is not statistically significant at .05 level of significance. Evidence supports the claim that there is a positive correlation between house value and rental amount. D. The result is not statistically significant at .05 level of significance. There is not enough evidence to show that there is a positive correlation between house value and rental amount.

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018

18th Edition

ISBN:9780079039897

Author:Carter

Publisher:Carter

Chapter4: Equations Of Linear Functions

Section4.5: Correlation And Causation

Problem 23PFA

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Question

The table below contains the value of the house and the amount of rental income in a year that the house brings in ("Capital and rental," 2013).

Table: Data of House Value versus Rental

Value	Rental	Value	Rental	Value	Rental	Value	Rental
81000	6656	77000	4576	75000	7280	67500	6864
95000	7904	94000	8736	90000	6240	85000	7072
121000	12064	115000	7904	110000	7072	104000	7904
135000	8320	130000	9776	126000	6240	125000	7904
145000	8320	140000	9568	140000	9152	135000	7488
165000	13312	165000	8528	155000	7488	148000	8320
178000	11856	174000	10400	170000	9568	170000	12688
200000	12272	200000	10608	194000	11232	190000	8320
214000	8528	208000	10400	200000	10400	200000	8320
240000	10192	240000	12064	240000	11648	225000	12480
289000	11648	270000	12896	262000	10192	244500	11232
325000	12480	310000	12480	303000	12272	300000	12480

Test at the 5% level for a positive correlation between house value and rental amount.

(vii) Select the statement that most correctly interprets the result of this test:

A. The result is statistically significant at .05 level of significance. Evidence supports the claim that there is a positive correlation between house value and rental amount.

B. The result is statistically significant at .05 level of significance. There is not enough evidence to show that there is a positive correlation between house value and rental amount.

C. The result is not statistically significant at .05 level of significance. Evidence supports the claim that there is a positive correlation between house value and rental amount.

D. The result is not statistically significant at .05 level of significance. There is not enough evidence to show that there is a positive correlation between house value and rental amount.

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