June 2024 Paper 2 Q10

OCR ACurrent spec11 marksIncludes hypothesis testingCorrelation & Regression

10 Each month, the manager of a large store records the number, \(c\), of customers who visit the store, and the amount, £\(h\), spent on heating during that month. The manager wants to test whether there is linear correlation between \(c\) and \(h\).

For a randomly chosen year the value of Pearson’s product-moment correlation coefficient, \(r\), between \(c\) and \(h\) was \(-0.798\), correct to 3 significant figures.

(a) Using the table below, carry out the test at the 1% significance level. [5]
(b) Describe briefly two main features of a scatter diagram that could be drawn to illustrate the values of \(c\) and \(h\) for this year. There is no need to draw a diagram. [2]
(c) The manager makes the following statement.
“The value of \(r\) shows that when we spend more on heating, fewer customers visit the store. So we should spend less on heating.”
Comment briefly on this statement, making reference to the context. [2]
(d) Give a statement about a probability to explain the meaning of the value 0.7155 in the table below. [2]

Critical values of Pearson’s product-moment correlation coefficient

1-tail test5%2.5%1%0.5%
2-tail test10%5%2%1%
\(n\)100.54940.63190.71550.7646
110.52140.60210.68510.7348
120.49730.57600.65810.7079
130.47620.55290.63390.6835