A study found that, in 2005, 12.5% of U.S.

workers belonged to unions (The Wall Street Journal, January 21, 200

a. Formulate the hypotheses that can be used to determine whether union membership increased in 2006.
b. If the sample results show that 52 of the workers belonged to unions, what is the p-value for your hypothesis tes
c. At α = .05, what is your conclusion?

a. 𝐻_0:𝑝≤0.125
𝐻_a:𝑝>0.125

b. 𝑝 ̅=52/400=0.13

𝑧=(𝑝 ̅−𝑝_0)/√((𝑃_0 (1−𝑃_0 ))/𝑛)𝑧=(0.13−0.125)/

√(0.125(1−0.125)/
400) = 0.30

Upper tail p-value is the area to the right of the test statistic.

Using normal table with z = 0.30.

p-value = .6179

c. At 0.05 level of significance, the p-value is greater.

We can conclude that it is not possible to reject the null
hypothesis. This indicates that from the data collect, we
cannot easily say that the union membership have
increased considering a sample of 400 U.S workers.
treet Journal, January 21, 2006). Suppose a sample of 400 U.S. workers is collected in 2006 to determine whether union effor

p increased in 2006.
p-value for your hypothesis test?
determine whether union efforts to organize have increased union membership.
Given are five observations collected in a regression study on two variables.

a. Develop a scatter diagram for these data.

b. Develop the estimated regression equation for these data.
c. Use the estimated regression equation to predict the value of y when x = 4.

a.
𝒙_𝒊 𝒚_𝒊 𝒙 ̅ 𝒚 ̅ 𝒙_𝒊 𝒚_ (𝒙_𝒊−𝒙 ̅ )^𝟐 c.
𝒊
2 7 10 16.6 -8 7 -56 64
6 18 -4 18 -72 16
9 9 -1 9 -9 1
13 26 3 26 78 9
20 23 10 23 230 100
171 190

Regression Study on Two Variables

30

25

20

15

10

0
0 5 10 15 20 25

b. 𝑥 ̅=10 𝑥 ̅=(∑128▒𝑥_𝑖 )/𝑛

𝑦 ̅=17 = 50/5=10
𝑦 ̅=𝛴_(𝑦_𝑖 )/𝑛 = 83/5=17
𝑏_1=(∑128▒(𝑥_𝑖−𝑥 ̅ )(𝑦_𝑖−𝑦 ̅ )
)/(∑128▒(𝑥_𝑖−𝑥 ̅ )^2 ) =
171/190=0.9
𝑏_0=𝑦 ̅−𝑏_1 𝑥 ̅=190−(0.9)(171)=36.1

𝑦 ̂=36.1+0.9𝑥
x=4

𝑦 ̂=36.1+0.9(4)=39.7
Given are five observations for two variables, x and y.

The estimated regression equation for these data is = .20 + 2.60x 𝑦 ̂

a. Compute SSE, SST, and SSR.

b. Compute the coefficient of determination r2 . Comment on the goodness of fit.
c. Compute the sample correlation coefficient.

a.
𝒙_𝒊 𝒚_𝒊 (𝒚_𝒊−𝒚 ̂ ) (𝒚_𝒊−𝒚 ̂ )^𝟐
1 3 2.8 0.04 25
2 7 5.4 2.56 1
3 5 8 9 9
4 11 10.6 0.16 9
5 14 13.2 0.64 36
15 40

𝑦 ̂_𝑖=.20+2.60_(𝑥_𝑖 ) 𝒚 ̅=𝟖

SSE= 𝛴(𝑦_𝑖−𝑦 ̂ )^2=12.40

SST=𝛴(𝑦_𝑖−𝑦 ̅ )^2= 80

SSR = 80 - 12.4 = 67.6

b.
𝑟^2=𝑆𝑆𝑅/𝑆𝑆𝑇=67.6/80= .845

84.5% of the variability in y was indicated by the line.

This simply means that it is the best fit line for a set of
data points.

c.
𝑟_𝑥𝑦=√.845=+ .9192

There is a strong and positive relationship between the

two variables: x and y.