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You are interested in determining the relationship between age and sales price of used cars. In checking local advertisements of used cars in your area you find six with the following age and price (used cars.txtPreview the document):
Age Price
6 5500
5 5100
7 5000
8 4500
6 5800
10 3800
a) Prior to calculating the correlation, if a linear relationship exists between Age and Price of used cars, what direction would you expect the direction to take?
b) Calculate by hand the correlation and the test statistic for the correlation test.
c) Use Minitab to verify you by-hand calculations and to conduct a test of significance for the correlation at a 5% level of significance. Include your hypotheses statements, p-value, degrees of freedom, and conclusion.
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