Correlation Between Customer Satisfaction And The Total Amount Of The Bill

899 WordsApr 16, 20164 Pages
Correlation and regression analysis allows us to determine the strength of a linear relationship, the direction of a linear movement, and if a relationship exists between two variables (Donnelly, 2013). In this scenario, a student intern noticed a possible correlation between the customer’s satisfaction and the total amount of the bill. The intern decided to collect 100 customer satisfaction surveys and match each of them with the corresponding total bill. The intern wants to use the collected data to develop a hypothesis, conduct a test for correlation, and develop a prediction equation for customer satisfaction. I will assist the student intern by developing an appropriate hypothesis for the data collected, conducting a test for correlation, developing a prediction equation for customer satisfaction, and analyzing the results to better inform the owners. Correlation and regression analysis will tell us if a relationship exists between customer satisfaction and the total amount of the bill and it will tell us the strength of the relationship. Currently we are unsure if there is a relationship between the two variables, so we need to develop a hypothesis and determine the correlation coefficient. Since we are only looking to see if there is a relationship between the two variables, we will create a hypothesis that answers this question. The null hypothesis will be that the population correlation coefficient equals 0 and the alternative hypothesis will be that the
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