The following table shows the annual income, in dollars, and amount spent on vacation, in dollars, for a sample of 8 families.

Answer:

a. The scatterplot is included.

b. There is a Positive Correlation!

c. The correlation coefficient computes to be 0.9219

Step-by-step explanation:

a.

To create the scatter plot:

• Open a Google Sheets document or an Excel file on your device.
• Populate columns B and C with the Income and Vacation data as specified.
• Select the data, then click on insert CHART.
• Choose the Scatter Chart format.

• Click OK.

A scatter plot representing your data should appear as shown.

b.

• Open a spreadsheet via Google Sheets.
• Double-click on your scatter plot.
• In the right panel, select the Customize option, and proceed to Series.
• Check the box for the Trend line.

- From the trend line, it is clear that the variables exhibit a positive correlation.

- An increase in income corresponds to an increase in vacation spending.

c. The correlation coefficient can be calculated as follows:

• Access an empty cell in your sheet and input the formula
• "=CORREL((y-axis range),(x-axis range))"
• Hit ENTER.

- According to our Google Sheets calculations, a positive correlation exists between the variables, and the correlation coefficient equals 0.9219.

- This correlation coefficient,r can also be calculated manually:

- Let x stand for income, and y for vacation, and scale all values down by 100 for easier calculations: