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Consider the Following Data on Income and Savings of a Sample

question 48

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Consider the following data on income and savings of a sample of residents in a locality:  Income ($ thousands)  Savings ($ thousands) 5010511152135514561558156016621665176617\begin{array} { c | c } \text { Income (\$ thousands) } & \text { Savings (\$ thousands) } \\\hline 50 & 10 \\51 & 11 \\52 & 13 \\55 & 14 \\56 & 15 \\58 & 15 \\60 & 16 \\62 & 16 \\65 & 17 \\66 & 17\end{array}
a. Compute the correlation coefficient. Is there a positive correlation between the income and savings? What is your interpretation?
b. Show a scatter diagram of the relationship between the income and savings.

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Definitions:

Abolitionists' Concept

The ideology held by those who advocated for the immediate emancipation of slaves and the end of racial discrimination and segregation.

Personal Liberty

The freedom of individual persons to live their lives as they choose, within the bounds of legal and social norms, without undue restriction or interference.

Social Hierarchy

A system or organization of people ranked one above the other according to status or authority.

African-Americans

An ethnic group in the United States with total or partial ancestry from any of the black racial groups of Africa, including descendants of enslaved Africans.

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