Answer to Question #209501 in Statistics and Probability for Mick

Question

It is assumed that annual profit from farming depends on cultivated area.

a. Draw scatter plot of relationship between annual profit from farming and Cultivated Area, and comment.

b. State and interpret the correlation coefficient.

c. Test whether the coefficient of correlation obtained in (b) is significant at 5% level of significance. Show all five steps of Hypothesis testing.

d. Use simple linear regression to develop regression model. Estimate and interpret your model, intercept and slope. Properly present your model in terms of an equation.