# 12.2.1.1 - Example: Temperature & Coffee Sales

12.2.1.1 - Example: Temperature & Coffee Sales1. Check assumptions and write hypotheses

Maximum daily temperature and coffee sales are both quantitative variables. From the scatterplot below we can see that the relationship is linear.

\(H_0: \rho = 0\)

\(H_a: \rho \neq 0\)

2. Calculate the test statistic

Pearson correlation of Max Daily Temperature (F) and Coffees = -0.741302 |

P-Value = <0.0001 |

\(r=-0.741302\)

3. Determine the p-value

\(p<.0001\)

4. Make a decision

\(p \leq \alpha\) therefore we reject the null hypothesis.

5. State a "real world" conclusion.

There is evidence of a relationship between the maximum daily temperature and coffee sales in the population.