Answer Happy

2. The data file "Oil" contains a random sample of 105 observations from an oil price index and a stock index fund called Spider. A fund manager wishes to test whether there is a correlation between the oil index and the Spider index. (a) Construct a scatterplot of these two variables. Would you describe the relationship between these two variables as linear, nonlinear or neither? Would you describe the relationship as positive, negative or neither? (b) Calculate the correlation coefficient for this sample of data. Interpret the sign and the magnitude. (c) Construct and conduct an appropriate hypothesis test for determining whether these two variables are correlated in the population. Use a 5% level of significance. Interpret your conclusion within the context of this problem.
: B + 62.3445 56.0084 57.5462 . 65.7143 5 54.5714 59.9202 B 58.0336 I 54.7983 0 54.5294 1 60.0966 2 60.7227 3 59.3025 4 62.3361 5 61.5924 6 55.542 7 56.2815 8 56.6681 9 56.3571 62.9748 63.4958 2 60.7857 3 56.3151 4 56.6429 5 52.4874 6 64.1555 7 63.6261 8 60.0462 9 58.4748 0 62.8824 1 60.8277 2 70.1134 3 55.8824 4 56.3109 5 60.7395 6 67.0924 7 60.1807 8 56.7941 9 53.5798 0 56.416 1 61.9244 2 58.937 1 A 0 1 Oil index Spider index 33.51 31.41 28.09 27.86 23.11 35.5 28.98 30.62 27.64 22.61 33.81 30.84 29.25 27.32 21.07 32.59 28.77 25.01 25.85 20.1 32.21 28.56 27.27 23.18 30.02 27.48 25.89 25.22 21.31 30.15 23.86 26.69 25.2 21.23 30.47 26.48 26.12 23.77 21.17 29.74 26.35
43 57.8361 44 46.1134 45 54.7227 46 64.1176 47 63.3193 48 57.1261 49 63.2773 50 61.8361 51 50.9412 52 60.0924 53 56.958 54 52.9706 55 54.5504 56 64.7731 57 59.0126 58 57.4244 59 57.4202 60 59.8908 61 58.3571 62 58.7563 63 55.2269 64 56.5924 65 59.8908 66 57.8151 67 64.5 68 56.979 69 65.0168 70 67.5672 71 61.5588 72 62.7941 73 65.0756 74 77.1134 75 67.6849 76 64.6429 77 62.7941 78 69.5 79 79.5672 80 65.9832 81 65.3109 82 64.8109 83 68.6807 25.9 24.84 20.9 29.09 26.21 24.81 21.95 20.76 33.12 28.67 25.42 24.26 22.65 33.98 27.14 25.85 24.11 21.82 31.04 28.4 26.96 24.32 21.19 33.18 27.06 24.44 18.87 24.49 25.63 25.04 19.62 24.44 24.75 22.78 23.45 18.33 25.2 25.33 24.22 23.56 18.23
84 68.9622 85 67.979 86 63.7647 87 66.7941 88 68.2395 89 64.5 90 57.5336 61.7563 91 92 52.7815 93 62.1471 94 65.8655 95 66.0966 96 65.6681 97 58.416 98 62.4958 99 73.1092 100 68.9496 101 60.2731 102 56.8571 103 63.9874 104 67.2563 105 59.7017 106 55.042 107 26.77 24.74 25.47 23.1 21.12 29.55 26.96 24.3 26.11 22.22 29.21 25.45 26.77 22.91 20.87 27.53 27.32 26.09 25.02 22.92 31.99 28.85 27.76