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# Paper Part C - Statistics Project Example

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The linear relationship between the credit balance and customer’s size of household is established at 0.75. While a perfect positive linear relationship is…

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Download file to see previous pages Similar to the coefficient of variation, the coefficient of determination normally ranges between +1 and -1. The coefficient of determination between the credit balance and size is established at 0.566; this means that 56% of the total variation can be explained by the linear relationship that exists between the credit balance and size of the household. The remaining 44% of the variation cannot be explained by the linear relationship which exists between the credit balance and size of a household.
The above results of a two tailed t-test help a statistician to understand the probability of the differences of a given data; it indicates whether data are attributed to sampling errors. The t-test is mostly used by statisticians to reject a particular hypothesis or not. Mostly, if the p-value, which indicates the level of probability, is less than a certain significance level, one can reject a hypothesis. The above two tailed t-test was performed on credit card balance (variable 1) and size of household (variable 2). The P (T ...Download file to see next pagesRead More
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