# 1. Table 14.27 shows the average temperature and precipitation in a city for the month of July…

February 3, 2022
###### .:. a. Assuming that management is willing to use three- sigma control limits, and using only the…
February 3, 2022

1. Table 14.27 shows the average temperature and precipitation in a city for the month of July during the years 2000 through 2006. Find the correlation coefficient.

Year

2000

2001

2002

2003

2004

2005

2006

Health care cost

78.1

71.8

75.6

72.7

75.3

73.6

75.1

Per capita income

6.23

3.64

3.42

2.84

1.83

2.82

4.04

2. A correlation coefficient based on a sample of size 27 was computed to be 0.40. Can we conclude at significance levels of (a) 0.05 and (b) 0.01, that the corresponding population correlation coefficient differs from zero?

3. A correlation coefficient based on a sample of size 35 was computed to be 0.50. At the 0.05 significance level, can we reject the hypothesis that the population correlation coefficient is (a) as small as ρ = 0.30 and (b) as large as ρ = 0.70?

4. A correlation coefficient based on a sample of size 35 was computed to be 0.50. At the 0.05 significance level, can we reject the hypothesis that the population correlation coefficient is (a) as small as ρ = 0.30 and (b) as large as ρ = 0.70?

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