The correlation between debts. Given figure shows a strong positive relationship between debt in 2007 and debt in 2006 for 24 countries. Use the bootstrap to perform statistical inference for these data.
(a) Describe the shape and bias of the bootstrap distribution. Do you think that a simple bootstrap inference (t and percentile confidence intervals) is justified? Explain your answer.
(b) Give the BCa and bootstrap percentile 95% confidence intervals for the population correlation. Do they (as expected) agree closely? Do these intervals provide significant evidence at the 5% level that the population correlation is not 0?
