Statistical Analysis

[Name of the Institute]

Introduction

The Kelsey City offers a complete range of the services, which includes development, public safety, as well as contemporary community services. Where efficient and effective services are given by most of the private companies, for instance building, maintenance as well as waste collection has mostly been given to the lowest cost bidder. However more important aspect for the well being and survival of the city tend to be the financial framework and the tax collection. Therefore the director is highly bothered about the sources and the determinant of the tax collection, which are necessary to gain and maintain the stability and growth of the town's development. The analysis will be done, in order to see the factor, which in generally, highly affects the increase or decrease in the tax revenue (Brown et.al, 1974).

Analysis

Correlation Analysis

Correlations

Population

Tax Revenue

Population

Pearson Correlation

1.00

.870

Sig. (2-tailed)

0.00

N

10.00

10.00

Tax Revenue

Pearson Correlation

.870

1.00

Sig. (2-tailed)

0.00

N

10.00

10.00

The correlation figure of 0.870, elaborates the high correlation between population and tax revenue. The direction of the relation between these two variables is positively related as the value of correlation is positive, which means that increase in the population tends to increase the tax revenue. Although the correlation figures are quite high, we should also look at the results of the p value at the confidence level of 95% and along with which, we should also consider the coefficient of determination, in order to gauge the variation explained by the variables, for each other (Norusis, 2004).

Looking at the p value, which is 0.00 i.e. <0.05, elaborates that our null hypothesis, which is

H0 = There is statistically insignificant relationship between population and tax revenue,

Is rejected and therefore significant relationship exists between population and tax revenue. Furthermore looking at the coefficient of determination or the R square, we can find out the variation, which ...