Hypothesis tests for the correlation coefficient and the slope of the least-squares regression line
The Cadet is a popular model of sport utility vehicle, known for its relatively high resale value. For a random sample of Cadets, each bought "new" two years ago and each sold "used" within the past month, the sample correlation coefficient relating mileage on the odometer and used selling price was . Based on this information, test for a significant linear relationship between the two variables mileage and used selling price by doing a hypothesis test regarding the population correlation coefficient . (Assume that the two variables have a bivariate normal distribution.) Use the level of significance, and perform a two-tailed test. Then fill in the table below.
Type of test statistic (chi square, F, T, Z) degrees of freedom___
The value of the test statistic (round to at least two decimal places)__
The p-value (round to at least two decimal places)___
The solution provides step by step method for the calculation of regression model . Formula for the calculation and Interpretations of the results are also included.