For a random sample of 53 building supply stores in a chain, the correlation between annual sales per square meter of floor space and annual rent per square meter of floor space was found to be 0.37. Test the null hypothesis that these two quantities are uncorrelated in the population against the alternative that the popula- tion correlation is positive.
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.
For a random sample of 53 building supply stores in a chain, the
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