1. Auction Bids. The author is a member of the board of directors of a nonprofit
ID: 3394994 • Letter: 1
Question
1.Auction Bids. The author is a member of the board of directors of a nonprofit organization that held a fund-raising auction. He recorded the opening bids suggested by the auctioneer and the final winning bids for several items. The amounts are listed below. Is there sufficient evidence to conclude that there is a linear correlation between the opening bids suggested by the auctioneer and the final winning bids?
Opening Bid
1500
500
500
400
300
Winning Bid
650
175
125
275
125
Opening Bid
1500
500
500
400
300
Winning Bid
650
175
125
275
125
Explanation / Answer
Ho: rho =0
H1: rho != 0
r=0.947
critical values = +/- 0.878
P- value = 0.015
There is sufficient evidence to support the claim that there is a linear correlation between the opening bids suggested by the auctioneer and the final winning bids.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.