You are the general manager of a car-rental service at the


You are the general manager of a car-rental service at the airport. In an effort to estimate the maintenance costs you obtain the following data from a random sample of 11 cars.

X = number of miles the car has been driven (in thousands) and Y = total maintenance cost in dollars.

X 3 5 12 8 3 16 12 9 2 4 10

Y 90 150 320 208 98 390 275 240 75 115 265

a. Calculate the sample correlation coefficient.

b. Use the 1% significance level to test for a positive population correlation between the number of miles driven and maintenance cost.

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Finance Basics: You are the general manager of a car-rental service at the
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