Listed below are paired data consisting of amounts spent onadvertising (in millions of dollars) and the profits (in millionsof dollars). Determine if there is a significant linear correlationbetween advertising cost and profit . Use a significance level of0.01 and round all values to 4 decimal places.
Advertising CostProfit
323
422
523
626
723
825
919
1025
1133
Ho: Ï = 0
Ha: Ï â‰ 0
Find the Linear Correlation Coefficient
r =
Find the p-value
p-value =Â Â Â
The p-value is
Less than (or equal to) αα
Greater than αα
The p-value leads to a decision to
Do Not Reject Ho
Reject Ho
Accept Ho
The conclusion is
There is insufficient evidence to make a conclusion about thelinear correlation between advertising expense and profit.
There is a significant positive linear correlation betweenadvertising expense and profit.
There is a significant linear correlation between advertisingexpense and profit.
There is a significant negative linear correlation betweenadvertising expense and profit.
