3 A student is investigating the link between temperature (in degrees Celsius) and electricity consumption (in Gigawatt-hours) in the country in which he lives.
The student has read that there is strong negative correlation between daily mean temperature over the whole country and daily electricity consumption during a year. He wonders if this applies to an individual season. He therefore obtains data on the mean temperature and electricity consumption on ten randomly selected days in the summer. The spreadsheet output below shows the data, together with a scatter diagram to illustrate the data.
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- Calculate Pearson’s product moment correlation coefficient between daily mean temperature and daily electricity consumption.
The student decides to carry out a hypothesis test to investigate whether there is negative correlation between daily mean temperature and daily electricity consumption during the summer.
- Explain why the student decides to carry out a test based on Pearson's product moment correlation coefficient.
- Show that the test at the \(5 \%\) significance level does not result in the null hypothesis being rejected.
- The student concludes that there is no correlation between the variables in the summer months.
Comment on the student's conclusion.