Oil Quality and Price
Quality of oil is measured in API gravity degrees--the higher the degrees API, the higher the quality. The table shown below is produced by an expert in the field who believes that there is a relationship between quality and price per barrel.

A partial Minitab output follows:

-{Oil Quality and Price Narrative} Conduct a test of the population coefficient of correlation to determine at the 5% significance level whether a positive linear relationship exists between the quality of oil and price per barrel.

Question

Oil Quality and Price
Quality of oil is measured in API gravity degrees--the higher the degrees API, the higher the quality. The table shown below is produced by an expert in the field who believes that there is a relationship between quality and price per barrel.

A partial Minitab output follows:

-{Oil Quality and Price Narrative} Conduct a test of the population coefficient of correlation to determine at the 5% significance level whether a positive linear relationship exists between the quality of oil and price per barrel.

Quizplus · Accepted Answer

The Answer of Oil Quality and Price
Quality of oil is measured in API gravity degrees--the higher the degrees API, the higher the quality. The table shown below is produced by an expert in the field who believes that there is a relationship between quality and price per barrel.

A partial Minitab output follows:

-{Oil Quality and Price Narrative} Conduct a test of the population coefficient of correlation to determine at the 5% significance level whether a positive linear relationship exists between the quality of oil and price per barrel.