A random sample from a bivariate normal population

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With reference to Exercise 67, use the formula obtained in Exercise 31 to construct a 99% confidence interval for ρ.

Exercise 67

The following data pertain to x, the amount of fertilizer (in pounds) that a farmer applies to his soil, and y, his yield of wheat (in bushels per acre):

Assuming that the data can be looked upon as a random sample from a bivariate normal population, calculate r and test its significance at the 0.01 level of significance. Also, draw a scattergram of these paired data and judge whether the assumption seems reasonable.

Exercise:

By solving the double inequality (with z given by the formula in the previous page) for ρ, derive a (1 - α)100% confidence interval formula for ρ.

Reference no: EM131137309

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