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 9 flights, the correlation between the number of passengers and total fuel cost was 0.712.

State the decision rule for 0.010 significance level: H0: 0; H1: > 0 (Round your answer to 3 decimal places.)

Can we conclude that the correlation in the population is greater than zero? Use the 0.010 significance level

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 9 flights, the correlation between the number of passengers and total fuel cost was 0.712.

Explanation / Answer

Q1) Here degree of freedom = 9-2 = 7, so at 1% level, critical value for right tailed test is 2.998

So, answer is 2.998

Q2) Test Statistic = (0.712*Sqrt(9-2))/Sqrt(1-0.712*0.712) = 2.683

Q3) Do not Reject H0. It is not reasonable to conclude that there is positive association in the

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