Question

Budget Sales

14.08 27.96

16.17 22.92

12.01 21.52

18.74 25.62

19.57 29.04

16.89 22.47

16.88 25.92

19.39 25.91

24.76 32.70

22.03 28.97

20.89 34.21

24.05 30.46

15.90 24.45

19.20 27.98

20.58 29.62

22.70 35.73

17.84 23.77

18.51 25.83

21.10 27.78

23.19 27.97

20.42 25.49

22.31 25.74

18.77 28.49

16.09 25.80

22.93 29.12

19.83 27.80

21.83 34.94

15.80 27.02

22.16 26.37

19.00 28.31

21.63 32.08

23.42 31.32

23.34 32.97

27.82 28.40

23.88 34.17

17.90 27.31

18.28 26.46

19.59 26.24

14.92 23.40

22.07 29.31

20.02 24.87

19.19 30.70

19.91 30.53

19.29 30.65

17.83 24.05

21.51 26.75

23.59 31.26

24.13 30.42

21.81 27.75

19.04 24.85

27.71 34.14

27.20 32.17

20.43 30.64

19.02 28.51

15.32 28.74

20.29 27.05

17.90 28.63

15.27 21.10

19.15 27.36

21.03 32.19

19.30 29.53

21.65 25.68

14.80 28.04

19.12 33.21

12.67 22.44

23.06 31.38

17.06 29.05

18.89 30.19

21.47 31.57

14.95 25.84

24.36 29.65

25.68 36.30

14.82 21.97

12.46 22.65

16.37 21.15

21.01 30.69

18.61 25.82

21.59 31.95

21.04 23.59

21.15 30.05

13.25 26.47

12.92 23.51

17.76 25.20

16.24 29.74

17.39 28.49

17.55 25.41

17.94 25.78

22.74 32.39

16.80 26.44

26.77 31.28

13.83 20.11

17.30 25.23

17.94 24.15

19.51 29.63

24.95 35.08

25.99 31.96

27.69 35.37

21.91 30.46

23.28 31.73

14.24 21.61

8.05 19.14

25.20 28.55

16.20 29.84

20.98 25.29

23.55 30.96

21.12 28.87

20.49 25.87

20.36 32.00

18.77 31.22

18.12 24.53

24.00 28.34

23.41 29.13

21.68 28.44

18.44 28.07

26.65 30.23

19.48 26.73

22.61 25.83

17.29 22.75

18.38 30.61

17.36 23.83

Using SPSS

a. [ 10 pts ] Create a scatter plot of budget vs sales.

b. [ 10 pts ] Calculate the correlation coefficient of budget and sales.

c. [ 15 pts ] Based on the results and the plot, is this data correlated? How do you know? Note that you do not need to interpret the p-value.

Answer 1

a. [ 10 pts ] Create a scatter plot of budget vs sales.

Required Scatter plot is given as below:

From above scatter plot, it is observed that there is a strong positive linear relationship exists between the two variables budget and sales.

b. [ 10 pts ] Calculate the correlation coefficient of budget and sales.

The correlation coefficient between the two variables budget and sales is given as 0.705 which indicate a considerable high positive linear relationship or association or correlation exists between the two variables budget and sales.

SPSS output is given as below:

Correlations
		Budget	Sales
Budget	Pearson Correlation	1	.705**
	Sig. (2-tailed)		.000
	N	120	120
Sales	Pearson Correlation	.705**	1
	Sig. (2-tailed)	.000
	N	120	120
**. Correlation is significant at the 0.01 level (2-tailed).

c. [ 15 pts ] Based on the results and the plot, is this data correlated? How do you know? Note that you do not need to interpret the p-value.

Based on the results and the plot, the data is correlated, because scatter plot shows the positive linear trend for the data of budget and sales.