WJEC Unit 4 Specimen — Question 5

Exam BoardWJEC
ModuleUnit 4 (Unit 4)
SessionSpecimen
TopicHypothesis test of Pearson’s product-moment correlation coefficient

5. A hotel owner in Cardiff is interested in what factors hotel guests think are important when staying at a hotel. From a hotel booking website he collects the ratings for 'Cleanliness', 'Location', 'Comfort' and 'Value for money' for a random sample of 17 Cardiff hotels.
(Each rating is the average of all scores awarded by guests who have contributed reviews using a scale from 1 to 10 , where 10 is 'Excellent'.) The scatter graph shows the relationship between 'Value for money' and 'Cleanliness' for the sample of Cardiff hotels.
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  1. The product moment correlation coefficient for 'Value for money' and 'Cleanliness' for the sample of 17 Cardiff hotels is 0.895 . Stating your hypotheses clearly, test, at the \(5 \%\) level of significance, whether this correlation is significant. State your conclusion in context.
  2. The hotel owner also wishes to investigate whether 'Value for money' has a significant correlation with 'Cost per night'. He used a statistical analysis package which provided the following output which includes the Pearson correlation coefficient of interest and the corresponding \(p\)-value.
    Value for moneyCost per night
    Value for money1
    Cost per night
    0.047
    \(( 0.859 )\)
    1
    Comment on the correlation between 'Value for money' and 'Cost per night'.