June 2018 Paper 3 Q2

EdexcelCurrent spec7 marksIncludes hypothesis testingCorrelation & Regression

2. Tessa owns a small clothes shop in a seaside town. She records the weekly sales figures, £\(w\), and the average weekly temperature, \(t\)°C, for 8 weeks during the summer.

The product moment correlation coefficient for these data is \(-0.915\)

(a) Stating your hypotheses clearly and using a 5% level of significance, test whether or not the correlation between sales figures and average weekly temperature is negative. (3)
(b) Suggest a possible reason for this correlation. (1)

Tessa suggests that a linear regression model could be used to model these data.

(c) State, giving a reason, whether or not the correlation coefficient is consistent with Tessa’s suggestion. (1)
(d) State, giving a reason, which variable would be the explanatory variable. (1)

Tessa calculated the linear regression equation as \(w = 10\,755 - 171t\)

(e) Give an interpretation of the gradient of this regression equation. (1)