Average salary paid to teachers and expenditures per pupil are two commonly used measures of the amount of money spent on education. Data on these two measures are provided by state, and states are classified by region of the country. The two measures have slightly skewed distributions, and Alaska is an outlier in both. A scatterplot of teachers' pay vs. spending shows a positive linear relationship. Although Alaska has the highest values of both teachers' salary and expenditures, it follows the general trend.
Teachers' pay may be used to predict educational spending, and vice versa, using simple regression. There appear to be regional differences in both teachers' pay and educational spending, but simple ANOVA using region as a dependent variable shows these differences to be insignificant. When either of the spending variables is included as an independent variable with region in and ANCOVA model, the F-ratio for the region variable is marginally significant (p-value around 0.06).