# 12.2.1.3 - Example: Temperature & Coffee Sales

1. 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.