A Statistician Investigating the Relationship Between the Amount of Precipitation

question 49

Essay

A statistician investigating the relationship between the amount of precipitation (in inches) and the number of car accidents gathered data for 10 randomly selected days. The results are presented below. $$\begin{array} { | c | c | c | } \hline \text { Day } & \text { Precipitation } & \text { Number of accidents } \\\hline 1 & 0.05 & 5 \\\hline 2 & 0.12 & 6 \\\hline 3 & 0.05 & 2 \\\hline 4 & 0.08 & 4 \\\hline 5 & 0.10 & 8 \\\hline 6 & 0.35 & 14 \\\hline 7 & 0.15 & 7 \\\hline 8 & 0.30 & 13 \\\hline 9 & 0.10 & 7 \\\hline 10 & 0.20 & 10 \\\hline\end{array}$$ Do these data allow us to conclude at the 10% significance level that the amount of precipitation and the number of accidents are linearly related?

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Definitions:

Present Value Factors

Factors used in discounting future cash flows to determine their present value, helping in the assessment of the value of investments today.

Compound Interest

is the interest on a loan or deposit calculated based on both the initial principal and the accumulated interest from previous periods.

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A tax deduction that allows a taxpayer to recover the cost of property or assets that have a useful life beyond the tax year, through annual allowances.