Senator Porcbaril wants to determine if a state\'s median income is related to t

Question

Senator Porcbaril wants to determine if a state's median income is related to the median price of a home in that state. He used information from the 2000 census. Which of the following statements is true about the correlation between median income and median home housing cost?

The regression equation is Median Housing Cost = -148.1 + 0.0106 * Median Income

R^2=0.3897 S=93.9575

A             The correlation is positive and significantly different from zero

B             Cannot be determined from the information given

C             The correlation is negative

D             The correlation is positive but not significantly different from zero

E              The correlation is not significantly different from zero

Coefficients SE tStat PValue Intercept -148.150369 88.65412 -1.67111 0.101077 Median Income 0.010613428 0.001897 5.594067 9.82E-07

Explanation / Answer

As the slope here is positive (0.0106) then the correlation is positive. As the P value for it is very small (9.82E-7), then it is significantly different from 0. Thus,

OPTION A: The correlation is positive and significantly different from zero [ANSWER]

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