Answer: Performance ratings of government agencies. The

Chapter 11, Problem 72E

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QUESTION:

Performance ratings of government agencies. The U.S. Office of Management and Budget (OMB) requires government agencies to produce annual performance and accounting reports (PARS) each year. Refer to The Public Manager (Summer 2008) listing of PARS evaluation scores for 24 government agencies, Exercise 2.129 (p. 105). Recall that evaluation scores ranged from 12 (lowest) to 60 (highest). The PARS evaluation scores for two consecutive years are reproduced in the following table.

a. Calculate and interpret the coefficient of correlation between the PARS scores in year 1 and year 2.

b. Is there sufficient evidence of a positive linear relationship between year 2 PARS score (y) and year 1 PARS score (x)? Test using \(\alpha\ =\ .05\).

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QUESTION:

Performance ratings of government agencies. The U.S. Office of Management and Budget (OMB) requires government agencies to produce annual performance and accounting reports (PARS) each year. Refer to The Public Manager (Summer 2008) listing of PARS evaluation scores for 24 government agencies, Exercise 2.129 (p. 105). Recall that evaluation scores ranged from 12 (lowest) to 60 (highest). The PARS evaluation scores for two consecutive years are reproduced in the following table.

a. Calculate and interpret the coefficient of correlation between the PARS scores in year 1 and year 2.

b. Is there sufficient evidence of a positive linear relationship between year 2 PARS score (y) and year 1 PARS score (x)? Test using \(\alpha\ =\ .05\).

ANSWER:

Step 1 of 10

a)

Obtain the coefficient of correlation between the PARS scores in year 1 and year 2.

The formula of the correlation coefficient is given below:

 …… (1)

Where,

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