Answer:
The answers are below
Step-by-step explanation:
1. H0: rho = 0
H1: rho not equal to 0
2. I will add the scatter plot as an attachment
3. ΣX = 523,
ΣY = 1055
ΣX² = 46023
ΣY²= 430407
ΣXY = 111448
n = 7
The correlation coefficient r =
r = 7(111448)-(523)(1055)/√7(46023)-(523)² × √7(430407)-(1055)²
r = 780136-551765/√322161-273529√3012849-1113025
= 228371/220.53*1378.34
= 228371/303965.32
r = 0.751
4. Test statistics
t = r√n-2/√1-r²
= 0.751√5/√0.5640
= 1.679/0.660
= 2.543
5. P value
Degrees of freedom n-2 = 5
T dist(2.543,5,2)
The p value is less than 0.05 so we reject null hypothesis. There is enough evidence to show a linear correlation between budgets and gross receipts.
