Module 9 - Coefficient Correlation
Module 9 - Coefficient Correlation
well known coffee shops. The table below shows the result of the experiment. Determine the extend of relationshi
of the two variables. At a .05 level of significance, is there significant relationship between calories and fat of the
coffee drinks from the two popular coffee shops?
The focus of the problem is to measure the extent of and significant relationship of calories and fat of the coffee
drinks from two coffee shops.
As previously mentioned, your guide in writing your hypothesis is the given question in the problem, which is you
alternative hypothesis; and you need to state it in declarative form. (no value should appear - both null and
alternative hypothesis.)
Null hypothesis: There is no significant relationship between calories and fats of the coffee drinks from two
popular coffee shops.
Alternative There is significant relationship between calories and fats of the coffee drinks from two
hypothesis: popular coffee shops.
Since the hypothesis is a two-tail, no-directional hypothesis, you need to divide the level of significance
by 2.
Degree of freedom: n - 2 = 7 - 2 = 5
Determine the critical r-value from the table given, using 0,025 level of significance and degree of
freedom 5.
Critical r = ± 0.755
Decision rule: Reject the null hypothesis if r > +0.755 or r < -0.755 otherwise, do not reject the
null hypothesis.
Decision rule: Reject the null hypothesis if r > +0.755 or r < -0.755 otherwise, do not reject the
null hypothesis.
Computation:
r = 0.7196
Next, describe the extent and direction of the relationship of the calories and fat of coffee drink from the two coff
shops.
The r-value of 0.7196 reflects the high positive relationship of the calories and fat of coffee drinks.
Then, measure and describe the strength of relationship of the two variables.
Conclusion: Do not reject the null hypothesis, 0.7196 < 0.755, which means there is no significant
relationship between calories and fat of the coffee drinks from the two coffee shops.
Recommendations:
Although there is a high positive correlation between calories and fat of the coffee drinks
from the two coffee shops, the relationship is not significant which means that the variatio
in the fat content of the coffee drinks is not caused by the changes in its calories content.
Still, management of the two coffee should need to consider the mixture of their coffee
drinks and make it healthier so their customers will enjoy and appreciate it more. (You can
give more recommendations aside from the given example.)
and fat of coffee drinks at two
rmine the extend of relationship
tween calories and fat of the
X² Y²
57600 64.0
67600 12.25
122500 484.0
122500 400.0
176400 256.0
260100 484.0
280900 361.0
1087600 2061.3
e level of significance
e and degree of
of coffee drinks.
ns there is no significant
om the two coffee shops.
Null hypothesis: There is no significant relationship between number of weekend television commercials
and the sales at the stereo and sound equipment store.
Alternative There is significant relationship between number of weekend television commercials and
hypothesis: the sales at the stereo and sound equipment store.
Degree of freedom: 10 - 2 = 8
Decision rule: Reject the null hypothesis if r > +0.765 or r < -0.765 otherwise, do not reject
the null hypothesis.
Computation:
There is a high positive correlation between number of weekend television commercials an
and sound equipment.
The r2 value suggests that 80.21% of the changes in the sales of stereo and sound equipme
be explained by the changes in number of weekend television commercials and the 19.79%
unexplained factors.
Reject null hypothesis, 0.8956 > 0.765, which means there is significa
Conclusion: between number of weekend television commercials and sales of ste
equipment store.
Recommendations: Since the number of weekend television commercials has shown sign
with the sales of the stereo and sound equipment, the store manage
investing more on its marketing activities particularly on television c
particularly during weekends to generate higher sales of its product
most people are off from work and spend times with their families a
activities together which include watching television. Thus, more pe
weekend commercials on television which may encourage themto b
especially if the television advertisements are enticing to them. (You
recommendations aside from the given example.)
television
elow shows the
a, is there significant
eo and sound
levision commercials