4.

4 CORRELATION ANALYSIS
4.4.1. Correlation Analysis for the Significant Relationship between Satisfaction with
Credit Facility of Pepsi and Credit Facility of Coke
NULL HYPOTHESIS H0:
There is positive relationship between credit facility of Pepsi and credit facility of coke.
ALTERNATIVE HYPOTHESIS H1:
There is negative relationship between credit facility of Pepsi and credit facility of coke.

[(n* XY) (X* Y)]
r = _______________________________________
(n x^2 ( x)
2
) (n y^2 ( y)
2
)

n = 5

[(5*3197) (120*120)]
r = ________________________________________
(5*4436 (120)
2
) (5*3152 (120)
2
)
= 1585/3252.7
= 0.487 Hence H
0
is accepted
INFERENCE: It shows that there is a positive correlation between credit facility of Pepsi and
credit facility of coke.
X Y X
2
Y
2
XY
11 33 121 1089 363
47 27 2209 729 1269
44 29 1936 841 1276
11 18 121 324 198
7 13 49 169 91
120 120 4436 3152 3197