The age and the market value of 12 second-hand cars are recorded.
Suggest a null and alternative hypothesis for a two tailed test to investigate whether there is a correlation between the age of a car and its market value.
The product moment correlation coefficient is calculated to be r=−0.68r = -0.68r=−0.68.
Test your hypotheses at the 1% significance level.
316 exam-style questions on OCR A Level Maths 2.5 Statistical Hypothesis Testing, covering 2.5.1 The language of hypothesis testing, 2.5.2 Hypothesis test for a binomial proportion, 2.5.3 Inference and significance level, 2.5.4 Sample mean as a random variable (A-level only), 2.5.5 Hypothesis test for the mean of a normal distribution (A-level only), 2.5.6 Pearson's product-moment correlation coefficient, and 2.5.7 Hypothesis test using Pearson's coefficient (A-level only). Each one has a worked solution and a mark scheme showing where the marks go.