Need a policy memo that includes the following: (documents attached)
- Use a correlation analysis to explain and a regression analysis to forecast the three major sources of Kelsey's tax revenue for the upcoming year.
- Use the city's historical data on population as the independent variable and its major tax revenue receipts as the dependent variables for these analyses.
- Include all of your calculations and your hypothesis test of the calculated correlation at a 0.05 level of significance.
- Provide any cautionary statements you believe given the analyses' findings.
Dear student, please refer to the attachment for the solution. Thank You.
The correlation coefficient between Population and Major Tax Revenue for Kelsey is given as r = 0.8484. The positive sign of the correlation coefficient indicates a direct relationship between Population and Major Tax Revenue for Kelsey. As population increases, major tax revenue earned also increases and vice versa. Also, the correlation coefficient is very close to its ideal value of +1, thus indicating a strong ...
A policy memo on city of Kelsey is discussed. A cautionary statement for the analysis is provided.