Example: Ice Cream Sales The local ice cream shop keeps track of how much ice cream they sell versus the temperature of that day for the last 12 days: Formulate a null hypothesis and verify it by Pearsons and Spearman coefficients Ho: there is no correlation between the number of ice cream sell and the temparature H1: there is a correlation between the number of ice cream sell and the temparature Spearman coefficients Temperature (°C) Ice Cream Sales ($) Rank temperature Rank ice cream sales difference 14.2 215 11 11 0 16.4 325 9 10 -1 11.9 185 12 12 0 15.2 332 10 9 1 18.5 406 6 8 -2 22.1 522 4 3 1 19.4 412 5 6 -1 25.1 614 1 1 0 23.4 544 2 2 0 18.1 421 7 5 2 22.6 445 3 4 -1 17.2 408 8 7 1 N: 12 14 N^3: 1728 rs: 0.951048951 critical value: 0.587 "Ho is rejected, there is a correlation between the number of ice cream sell and the temparature " Pearsons coefficients Average: 18.7 402.42 Diferrences -4.5 -187.42 838.69 alpha: 0.05 -2.3 -77.42 176.12 D.O.F 10 -6.8 -217.42 1473.00 -3.5 -70.42 244.70 r: 0.9575 -0.2 3.58 -0.63 critical value: 0.576 3.4 119.58 409.57 0.7 9.58 6.95 6.4 211.58 1359.42 "Ho is rejected, there is a correlation between the number of ice cream sell and the temparature " 4.7 141.58 668.98 -0.6 18.58 -10.69 3.9 42.58 167.14 -1.5 5.58 -8.24 177.0 174754.92 5325.03