Question: 17

The number of cash machines in a random sample of eight towns, and the population of the towns are:

Cash Machines: 20 23 28 41 53 46 82 126

Population (00s): 37 51 69 72 90 105 163 227

(a) Regress the number of cash machines against population and test the hypothesis that the populations slope is zero at the 5% level of significance.

(b) Produce a 95%confidence interval for the mean number of cash machines in towns with a population of 80,000 people.