Pennsylvania Refining Company is studying the relationship between the pump price of gasoline and the number of gallons sold. For a sample of 17 stations last Tuesday, the correlation was 0.51. 1. State the decision rule for 0.025 significance level. (Round your answer to 3 decimal places.) Reject HO if t> 2. Compute the value of the test statistic. (Round your answer to 3 decimal places.) Value of the test statistic is 3. Can we conclude that the correlation in the population is greater than zero? Use the 0.025 significance level. H0. We conclude that the correlation in the population is Zero.
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.
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