Correlation Analyses

A small transits system has just become part of a transit authority which will provide significantly increased funding.

You have been assigned the task of developing a recommended route structure for the new service, but this will involve estimating passenger demand. You wish to develop sketch planning models and must choose appropriate socio-economic variables for inclusion in the models.

You have two kinds of information available. First you have obtained estimates of daily riders for 1997, based upon a census zone system, as well as selected items of census data from 2000. These are shown in the table. Secondly, you have recently conducted an opinion survey of the local population and from these data ranked the current 30 zones according to the propensity of the residents to use transit. These ranks utilize a scale of 1 to 30 with 1 being the best market condition. Using these data accomplish the following:

1. Develop appropriate statistical measures of correlation for the following

a. 1997 daily riders versus 2000 population density

b. 1997 daily riders versus 200 percentages of persons age 62 or older  

c. 1997 daily riders versus 2000 average annual family income

d. 2000 propensity rank versus 2000 population density

e. 2000 propensity rank versus 2000 average annual family income

2. Test the significance of each of your measures of correlation using appropriate hypothesis testing procedures and an alpha (a) level of 0.05.

3. Plainly state the action which you would take as the result of each of the tests performed in item #2. That is, should each independent variable be used to predict each dependent variable.

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