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2.5 Statistical Hypothesis Testing

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Question 83

Will sells cars. He thinks there is a positive correlation between the price of a car and its mileage.

He calculates the product moment correlation coefficient between these two variables for a random sample of 15 cars and obtains r=0.455r = 0.455r=0.455

Carry out a suitable test to investigate Will's belief at a 5% level of significance.

State clearly

  • your hypotheses
  • your critical value
[3]

2.5 Statistical Hypothesis Testing Questions

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