The sales at Sunflower, an important garment store for ladies, have increased d

last 12 months, where the store has opened new locations. Until now, Sun
managers selected the locations of the stores based on subjective information such
that can be affordable or the simple perception that the location seemed to be the
for a garment store. YOU, as the new Planning Director, need to develop a new ap
select new locations, so that in the end, Sunflowers will be able to make welldecisions to open new stores. This new plan must permit you predict the annual
all potential stores you might be considering. YOU think the size of the store cont
a very important degree to the success and want to consider this relation in the
making process.

Determine whether or not as the Dimension of the stores increase, the

sales increase as well.

Square Feet

Annual Sales

1.7
1.6
2.8
5.6
1.3
2.2
1.3
1.1
3.2
1.5
5.2
4.6
5.8
3

3.7
3.9
6.7
9.5
3.4
5.6
3.7
2.7
5.5
2.9
10.7
7.6
11.8
4.1

POSITIVE CORRELATION
INDEPENDENT VARIABLE INCREASES AND DEPENDENT VARIABLE DOES TOO.
Ho: r 0
OR
Ho: r = 0
H1: r > 0
H1: r > 0

NEGATIVE CORRELATION
INDEPENDENT VARIABLE INCREASES AND DEPENDENT VARIABLE DECREASES.
Ho: r 0
OR
Ho: r = 0
H1: r < 0
H1: r < 0

ladies, have increased during the

ocations. Until now, Sunflowers
ubjective information such as a rent
ocation seemed to be the best one
need to develop a new approach to
will be able to make well-informed
you predict the annual sales of
the size of the store contributes in
nsider this relation in the decision

he stores increase, the Annual

ABLE DOES TOO.

ABLE DECREASES.

FORMULA TO CALCULATE P-VAL

=TDIST((pearson_cell*sqrt(N-2)/sqrt(1(pearson_cell*pearson_cell))), N, 2)

SAMPLE SIZE
PEARSON'S CORRELATION
P-VALUE

Err:502

TO CALCULATE P-VALUE

N-2)/sqrt(1), N, 2)
CHAMPION CRITERIA, 1981

BISQUERRA'S CRITERIA

CRITERIA, 1981

RA'S CRITERIA

Variance
Variance is a measure of the variability or spread in a set of
data. Mathematically, it is the average squared deviation from
the mean score. We use the following formula to compute
variance.

where
N is the number of scores in a set of scores
X is the mean of the N scores.
Xi is the ith raw score in the set of scores
xi is the ith deviation score in the set of scores
Var(X) is the variance of all the scores in the set

set of
n from
ompute

Covariance
Covariance is a measure of the extent to which
corresponding elements from two sets of ordered data move
in the same direction. We use the following formula to
compute covariance.

where
N is the number of scores in each set of data
X is the mean of the N scores in the first data set
Xi is the ithe raw score in the first set of scores
xi is the ith deviation score in the first set of scores
Y is the mean of the N scores in the second data set
Yi is the ithe raw score in the second set of scores
yi is the ith deviation score in the second set of scores
Cov(X, Y) is the covariance of corresponding scores in the
two sets of data

h
ered data move
ormula to

set
es
scores
ata set
ores
of scores
scores in the

The table below displays scores on math, English,

and art tests for 5 students. Note that data from
the table is represented in matrix A, where each
column in the matrix shows scores on a test and
each row shows scores for a student.

Student
1
2
3
4
5

Math
90
90
60
60
30

English
60
90
60
60
30

Art
90
30
60
90
30

Given the data represented above, compute the

variance of each test and the covariance between
the tests.