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A dry-cleaning shop claims that a new spot remover will remove more than 70% of the spots to which it is applied. To check the claim, the spot remover is applied to 16 randomly selected spots. If only 12 of 16 spots are removed, test the following hypotheses:
A) Theta = 0.70 vs. Theta > 0.70
B) Theta = 0.70 vs. Theta not = 0.70
Use the level of significance a = 0.05
Regression and Correlation are two of the most often used and abused tools in research. People are quick to jump to conclusions that if a relationship exists between two variables, then one must cause (causation) the other.
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