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Regression Analysis and Correlation Hypothesis Test

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Construct a Scatterplot of the raw data. Then, run the Correlation/Regression program.

Costs of Television: Listed below are prices (in dollars) and quality rating scores of rear-projection televisions. All of the televisions have screen sizes of 55 or 56 inches. Is there sufficient evidence to conclude that there is a linear correlation between the price and the quality rating score of rear-projection televisions? Does it appear that as the price increases, the quality score also increases? Do the results suggest that as you pay more, you get better quality?

Price 2300 1800 2500 2700 2000 1700 1500 2700

Quality 74 73 70 66 63 62 52 68

Identify the correlation coefficient: r = __________
Identify the CV at alpha = 0.05: __________

Is there significant linear correlation?: ________
How do you know? ____________________________

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Solution Summary

The solution provides step-by-step method of performing a Regression Analysis and a Correlation Hypothesis Test in EXCEL. All the steps of hypothesis testing (formulation of null and alternate hypotheses, selection of significance level, choosing the appropriate test-statistic, decision rule, calculation of test-statistic and conclusion) have been explained and the Regression Analysis has been shown in details.

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