In: Statistics and Probability
b. Between Pearson and Spearman’s rank correlation analyses, which should we conduct to understand the strength of the linear relationship between the Price (Q2b) and Promotion (Q2c) attributes? Describe why you chose that analysis.
a) The hypothesis:
null Ho : there is no relation between the importance of price attribute(Q2b) and the importance of promotion(Q2c) i.e
=0
H1 : importance of Q2b increases Q2c i.e >0
b) For this part we have to check the distribution of the variables.The Pearson correlation coefficient measures the strength of the linear relationship between normally distributed variables. When the variables are not normally distributed or the relationship between the variables is not linear, it may be more appropriate to use the Spearman rank correlation method.