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Statistics for Business and Economics | 12th Edition | ISBN: 9780321826237 | Authors: James T. McClave, P. George Benson, Terry T Sincich
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Solved: Public corruption and bad weather. Refer to the

Chapter 11, Problem 56E

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QUESTION:

Public corruption and bad weather. Refer to the Journal of Law and Economics (Nov. 2008) study of the link between Federal Emergency Management Agency (FEMA) disaster relief and public corruption, Exercise 11.20 (p. 616). Evaluate the overall adequacy of the straight-line model relating a state’s average annual number of public corruption convictions (y) to the state’s average annual FEMA relief (x). Use \(\alpha\) = .01.

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QUESTION:

Public corruption and bad weather. Refer to the Journal of Law and Economics (Nov. 2008) study of the link between Federal Emergency Management Agency (FEMA) disaster relief and public corruption, Exercise 11.20 (p. 616). Evaluate the overall adequacy of the straight-line model relating a state’s average annual number of public corruption convictions (y) to the state’s average annual FEMA relief (x). Use \(\alpha\) = .01.

ANSWER:

Step 1 of 3

Perform a test of a linear relationship between a state’s average annual number of public corruption convictions (y) and a state’s average annual FEMA relief (x).

The null hypothesis for the test is given below:

The alternative hypothesis for the test is given below:

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