The Airline Passenger Association studied the relationship between the number of

Question

The Airline Passenger Association studied the relationship between the number of passengers on a particular flight and the cost of the flight. It seems logical that more passengers on the flight will result in more weight and more luggage, which in turn will result in higher fuel costs. For a sample of 27 flights, the correlation between the number of passengers and total fuel cost was 0.739. (1) State the decision rule for 0.10 significance level: H_0: p lessthanorequalto 0: H_1: p > 0 (Round your answer to 3 decimal places.) (2) Compute the value of the test statistic. (Round your answer to 3 decimal places.) (3) Can we conclude that the correlation in the population is greater than zero? Use the 0. 10 significance level

Explanation / Answer

1 ans) 0.10 significance level is 90% confidence intraval

n =27 df =n-1=26

reject h0 if t>1.706 from standard t stastic table value is taken

2 ans) T= (0.73927- 2)/(1-(0.739)^2 ) =1.834/0.4538 =4.0414

3ans) reject h0 and it is resonable

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