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# Correlation analayis

Using the same sample data listed in the Background Response below, calculate the variance of the same sample data, and use that as the population variance. Use the P-Value Method for the calculations.

Background:
1. Ask fifteen (15) people to estimate the distance (in miles) from Washington D.C. to New York, New York (sample).
2. Use an online map program (MapQuest, Yahoo, etc) to find the actual distance.
3. Test the claim that the sample mean is equal to the actual length? Is there "collective wisdom" among your friends whereby the sample mean is approximately equal to the actual distance?
Background Response:
I asked 15 friends to estimate the distance (in miles) from Washington, DC to New York, New York and I received the following responses: 200, 215, 190, 195, 200, 250, 240, 196, 250, 230, 180, 260, 200, 190, 210

- According to the online Google directions program, the actual mileage is 228.

- Test the claim that the sample mean is equal to the actual length? Is there "collective wisdom" among the people whereby the sample mean is approximately equal to the actual distance?

H0: Population mean =228
H1: Population mean ?228
The test used is
Decision rule: Reject the null hypothesis if the calculated value of t is greater than the critical value of t.We are going to revisit the discussion from last week. Everyone had a great start but didn't seem to understand the question.

#### Solution Summary

The solution provides step by step method for testing the significance of linear correlation . Formula for the calculation and Interpretations of the results are also included.

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