AS October 2020 Q1

EdexcelAS paperCurrent spec3 marksIncludes hypothesis testingCorrelation

1. An estate agent in Tornep believes that houses further from the railway station are more expensive than those that are closer. She took a random sample of 22 three-bedroom houses in Tornep and calculated the product moment correlation coefficient between the house price and the distance from the station to be 0.3892

Stating your hypotheses clearly, use a 5% level of significance to test the estate agent’s belief. State the critical region used in your test. (3)