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1. Suppose you want to study the association between the literacy rate in a country, the population, and the country's gross domestic product (GDP). Go to the website of Information Please Almanac (http://www.infoplease.com). Select the category World, and then select Countries. A list of 195 countries starting with Afghanistan and ending with Zimbabwe will appear. Randomly select a sample of about 20 countries. It may be convenient to use a systematic sample. In other words, randomly select 1 of the first 10 countries and then select every tenth country thereafter. Click on each country name and scan the information to find the literacy rate, the population, and the GDP. Compute the correlation among the variables. In other words, find the correlation between: literacy and population, literacy and GDP, and population and GDP. Warning: Be careful of the units. Sometimes population is reported in millions, other times in thousands. At the .05 significance level, can we conclude that the correlation is different from 0?


2. Many real estate companies and rental agencies now publish their listings on the Web. One example is the Dunes Realty Company, located in Garden City and Surfside Beaches in South Carolina. Go to the website http://www.dunes.com and select Cottage Search. Then indicate 5 bedroom, accommodations for 14 people, second row (this means it is across the street from the beach), and no pool or floating dock; select a period in July or August; indicate that you are willing to spend $5,000 per week; and then click on Search the Cottages. The output should include details on the cottages that met your criteria.

  1. Determine the correlation between the number of baths in each cottage and the weekly rental price. Can you conclude that the correlation is greater than zero at the .05 significance level? Determine the coefficient of determination.
  2. Determine the regression equation using the number of bathrooms as the independent variable and the price per week as the dependent variable. Interpret the regression equation.
  3. Calculate the correlation between the number of people the cottage will accommodate and the weekly rental price. At the .05 significance level can you conclude that it is different from zero?







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