In an Area of the Midwest, Records Were Kept on the Relationship

question 14

Essay

In an area of the Midwest, records were kept on the relationship between the rainfall (in inches)and the yield
of wheat (bushels per acre). Test the significance of the correlation coefficient using α $\alpha$ = 0.01 and the claim ρ $\varrho = 0 .$ $$\begin{array} { l | c | c | c | c | c | c | c | c | c | } \text { Rain fall (in inches), x } & 11 & 9.3 & 13.9 & 13 & 19.3 & 10.8 & 7.5 & 16.1 & 16.5 \\\hline \text { Yield (bushels per acre), y } & 51.5 & 47.2 & 59.8 & 60 & 83.4 & 50.2 & 32.9 & 77 & 79.8\end{array}$$

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Definitions:

Variable Costs

Expenditures that increase or decrease in tandem with production volume.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent and salaries.

Depreciation Expense

Apportioning the value of a concrete asset throughout its operational life.

Sales Price

The amount of money for which a product or service is sold to customers, not necessarily reflecting the cost of production or provision.