An automobile manufacturer claims that a particular model car averages 24 miles per gallon. A consumer group feels that the company is overestimating the mean miles per gallon and asks the Consumer Protection Agency to investigate. The CPA plans to take a random sample of 30 cars of this model, find the mean miles per gallon for these cars, and conduct a test to determine whether the mean is significantly less than 24 mpg. The hypotheses for the test are: H₀: µ=24 and Ha: µ < 24. State and describe the Type 1 and 2 errors.
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.
An automobile manufacturer claims that a particular model car averages 24 miles per gallon. A consumer group feels that the company is overestimating the
State and describe the Type 1 and 2 errors.
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