Respuesta :
Answer:
Let's assume the following data:
Price in Dollars (X) 26 29 32 38 47
Number of Bids (Y) 12 13 15 16 18
For our case we have this:
n=10 [tex] \sum x = 172, \sum y = 74, \sum xy = 2623, \sum x^2 =6194, \sum y^2 =1118[/tex]
[tex]r=\frac{5(2623)-(172)(74)}{\sqrt{[5(6194) -(172)^2][5(1118) -(74)^2]}}=0.974[/tex]
So then the correlation coefficient would be r =0.974
Step-by-step explanation:
Previous concepts
The correlation coefficient is a "statistical measure that calculates the strength of the relationship between the relative movements of two variables". It's denoted by r and its always between -1 and 1.
Solution to the problem
And in order to calculate the correlation coefficient we can use this formula:
[tex]r=\frac{n(\sum xy)-(\sum x)(\sum y)}{\sqrt{[n\sum x^2 -(\sum x)^2][n\sum y^2 -(\sum y)^2]}}[/tex]
Let's assume the following data
Price in Dollars (X) 26 29 32 38 47
Number of Bids (Y) 12 13 15 16 18
For our case we have this:
n=10 [tex] \sum x = 172, \sum y = 74, \sum xy = 2623, \sum x^2 =6194, \sum y^2 =1118[/tex]
[tex]r=\frac{5(2623)-(172)(74)}{\sqrt{[5(6194) -(172)^2][5(1118) -(74)^2]}}=0.974[/tex]
So then the correlation coefficient would be r =0.974
