State Budget and Days Late. New York State has become notorious for approving the state budget after the annual deadline April 1. The amounts of the budget (in billions of dollars adjusted for inflation) and the number of days late are listed below with corresponding entries representing the same year. (The data are in order by row.)

Does it appear that the size of the budget affects the number of days that the budget is late? Use a 0.05 significance level.

Solution: We have the following scatterplot:

The correlation coefficient is computed as r = 0.59363. The critical value forand n = 20 is rc = 0.444. Since r > rc, we conclude that there is significant linear relationship between the variables.

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