A retail manager collected data on the floor space (xxx) and the average weekly revenue (yyy) of 12 branches of a clothing store chain.
| Floor Space (100 m2) | 1.2 | 1.5 | 1.8 | 2.0 | 2.5 | 3.0 | 3.2 | 3.5 | 4.0 | 4.2 | 4.8 | 5.5 |
| Weekly Revenue (£1000 £1000\,£1000s) | 8 | 10 | 11 | 14 | 15 | 19 | 18 | 22 | 25 | 24 | 28 | 32 |
Draw a scatter graph for this information.
Give an interpretation of the correlation between floor space and weekly revenue.
The equation of the regression line for this data is y=5.62x+1.85y = 5.62x + 1.85y=5.62x+1.85.
Give an interpretation of the gradient of this regression line.
The product moment correlation coefficient is calculated to be 0.96.
Stating your hypotheses clearly, test at the 5% significance level whether there is a positive correlation between floor space and revenue.
Determine whether you would reach the same conclusion at the 1% significance level.
Practise Edexcel A Level Maths Hypothesis Testing for Zero Correlation with exam-style questions for A Level Maths. 52 questions, matched to the Edexcel A Level Maths (9MA0) specification and written in Paper 1, Paper 2 and Paper 3 style. Every question includes a full worked solution and mark scheme, so you can see where marks are awarded rather than just whether you got the answer right.
