Pennsylvania Refining Company is studying the relationship between the pump price of gasoline and the number of gallons sold. For a sample of 21 stations last Tuesday, the correlation was 0.42. Can the company conclude that the correlation is positive? State the decision rule for 0.02 significance level. (Round your answer to 3 decimal places.) Compute the value of the test statistic. (Round your answer to 3 decimal places.) Can we conclude that the correlation in the population is greater than zero? Use the 0.02 significance level.
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.
Pennsylvania Refining Company is studying the relationship between the pump price of gasoline and the number of gallons sold. For a sample of 21 stations last Tuesday, the
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State the decision rule for 0.02 significance level. (Round your answer to 3 decimal places.)
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Compute the value of the test statistic. (Round your answer to 3 decimal places.)
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Can we conclude that the correlation in the population is greater than zero? Use the 0.02 significance level.
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