Statistics: Informed Decisions Using Data (4th Edition)

Published by Pearson
ISBN 10: 0321757270
ISBN 13: 978-0-32175-727-2

Chapter 15 - Section 15.6 - Assess Your Understanding - Applying the Concepts - Page 775: 9a

Answer

$r_s\gt 0.657$: null hypothesis is rejected. There is enough evidence to conclude that there is a positive association between income and commute time.

Work Step by Step

$H_0: X~and~Y~are~not~associated$ versus $H_1: X~and~Y~are~positively~associated$ See the picture. $∑d_i^2=6.25+0+0+4+0+0.25=10.5 $ $r_s=1-\frac{6∑d_i^2}{n(n^2-1)}=1-\frac{6\times10.5}{6(6^2-1)}=0.700$ Critical value = 0.657 (According to Table XIV, for n = 6 and α(1) = 0.1) Since $r_s\gt 0.657$, we reject the null hypothesis.
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