Description of the correlation

  Question 1 For the following give: • Description of the correlation (negative or positive). • The appropriate critical value for 𝑟 identified from 𝑡-table. • The comparison of the linear correlation coefficient to that identified in (b). • Decision on the null hypothesis (H0) and the conclusion based on the decision. a) 𝑛 = 10, 𝑟 = 0.149 b) 𝑛 = 60, 𝑟 = −0.765 Question 2 (𝑥) (𝑦) 10 0.39 20 0.79 30 1.19 40 1.61 50 2.03 a) Compute the linear correlation coefficient, 𝑟 and give an interpretation of the result. (6 marks) b) Test, using the significance level of 0.05 that there is significant linear correlation between the time an employee spent at the company and the employee’s hourly pay. (6 marks) c) Can 𝑥 be used to predict 𝑦? Give a reason for your answer. (2 marks) d) If you answered yes to the above, find the equation of the regression line. (6 marks)