A limousine company is concerned with increasing costs of maintaining their fleet of 150 cars. After testing, the company found that the emissions systems of 9out of the 20 cars they tested failed to meet pollution control guidelines. They had forecasted costs assuming that a total of 54 cars would need updating to meet the latest guidelines. Is this strong evidence that more than 36% of the fleet might be out of compliance? Test an appropriate hypothesis and state your conclusion. Be sure the appropriate assumptions and conditions are satisfied before you proceed.
Correlation
Correlation defines a relationship between two independent variables. It tells the degree to which variables move in relation to each other. When two sets of data are related to each other, there is a correlation between them.
Linear Correlation
A correlation is used to determine the relationships between numerical and categorical variables. In other words, it is an indicator of how things are connected to one another. The correlation analysis is the study of how variables are related.
Regression Analysis
Regression analysis is a statistical method in which it estimates the relationship between a dependent variable and one or more independent variable. In simple terms dependent variable is called as outcome variable and independent variable is called as predictors. Regression analysis is one of the methods to find the trends in data. The independent variable used in Regression analysis is named Predictor variable. It offers data of an associated dependent variable regarding a particular outcome.
cars would need updating to meet the latest guidelines. Is this strong evidence that more than 36% of the fleet might be out of compliance? Test an appropriate hypothesis and state your conclusion. Be sure the appropriate assumptions and conditions are satisfied before you proceed.
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