Consider the Following Data on Income and Savings of a Sample

Essay

Consider the following data on income and savings of a sample of residents in a locality: $$\begin{array} { c | c } \text { Income (\$ thousands) } & \text { Savings (\$ thousands) } \\\hline 50 & 10 \\51 & 11 \\52 & 13 \\55 & 14 \\56 & 15 \\58 & 15 \\60 & 16 \\62 & 16 \\65 & 17 \\66 & 17\end{array}$$
a. Compute the correlation coefficient. Is there a positive correlation between the income and savings? What is your interpretation?
b. Show a scatter diagram of the relationship between the income and savings.