A Professor of Economics Wants to Study the Relationship Between

question 209

Essay

A professor of economics wants to study the relationship between income y (in $1000s) and education x (in years). A random sample of eight individuals is taken and the results are shown below. $$\begin{array} { | l | c | c | c | c | c | c | c | c | } \hline \text { Education } & 16 & 11 & 15 & 8 & 12 & 10 & 13 & 14 \\\hline \text { Income } & 58 & 40 & 55 & 35 & 43 & 41 & 52 & 49 \\\hline\end{array}$$ Assume that the conditions for the tests conducted in the previous two questions are not met. Do the data allow us to infer at the 5% significance level that years of education and income are linearly related?

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Definitions:

Iodine Contrast

A type of contrast agent used in medical imaging that contains iodine, which helps enhance the visibility of internal structures.

Allergic

Having an immune response or sensitivity to a particular substance, resulting in symptoms like itching, sneezing, or rash.

Shellfish

Aquatic shelled animals, such as shrimp, crabs, and oysters, often used for food, some of which can cause allergic reactions in certain individuals.

KUB Radiography

The process of X-raying the abdomen to help assess the size, shape, and position of the urinary organs; evaluate urinary system diseases or disorders; or determine the presence of kidney stones. It can also be helpful in determining the position of an intrauterine device (IUD) or in locating foreign bodies in the digestive tract; also called a flat plate of the abdomen.