Presentation in Statistics.pptx

1. C A R R E N T A L C O M P A N I E S
T e s t t h e s i g n i f i c a n c e o f c o r r e l a t i o n c o e f f i c i e n t , u s i n g α = . 0 5 a n d
r = 0 . 9 8 2 .
Company Cars (in ten
thousands)
Revenue(in Billions)
A 20.8 2.1
B 63 7
C 29 3.9
D 8.5 1.5
E 13.4 1.4
F 19.1 2.8

2. 1.Null Hyphotheses Ho: ρ=0 (There is no significant relationship between the
number of cars a rental agency owns and its annual income)
Alternative Hypotheses H1: ρ ≠ 0 (There is a significant relationship between the
number of cars a rental agency owns and its annual income)
2. α = . 0 5
3 . C r i t i c a l V a l u e s : t < - 2 . 7 7 6 o r t > 2 . 7 7 6 w i t h
4 . C o m p u t a t i o n
2
)
982
(.
1
2
6
982
.



t
4
.
10
59
.
10
982
.
359
.
112
982
.
0356
.
4
982
.




x
2
1
2
r
n
r
t




3. 5. Decision: Reject the null hypoyhesis
6. Conclusion: There is a significant relationship between the number of
cars a rental agency owns and its annual income.
7.Verbal Interpretation:
r = 0 . 9 8 2 - ( V e r y h i g h p o s t i v e
c o r r e l a t i o n )