Statistics project Example | Topics and Well Written Essays - 1500 words

Statistics Project Example From the above data we would be finding the correlation coefficients of all the other variables with the variable ssize. The formula which is used to find the Karl Pearson’s correlation coefficient is as follows: where the term, is the covariance term and the term  is the standard deviation of x and the term is the standard deviation of y. The range of Karl Pearson’s correlation coefficient is from -1 to +1. If the correlation coefficient is nearing to -1, it denotes negative relation between the two variables x and y (if one increases the other decreases and vice versa), and if the correlation coefficient is nearing to +1, it denotes positive relation between the two variables x and y (if one increases the other also increases and if one decreases other also decreases). To find out the existence of any type of correlation roughly, we take the help of scatter diagram. The correlation coefficient is tested through the test of significance procedure that under null hypothesis, H0: The correlation coefficient is not significant against the alternative hypothesis H1: The correlation coefficient is significant. The formula for testing the correlation coefficient is given by Student’s t-test using the following expression: to =  with (n-2) degrees of freedom where n is the sample size. If the correlation coefficient is significant, we conclude that the relationship between the two given variables is highly significant and influential otherwise we say that the correlation coefficient is not significant. In the present study, all the other variables are having highly significant correlation coefficients with sales except npart. The regression equation which explains the sales per square meter on hours worked on the sales floor space of the store is y = 5133.59 + 37.53 * x1- 22.14 * x2 where x1 denotes hoursw and x2 denotes ssize. From the table E which are the