In: Accounting
Question 4
A researcher wants to know the relationship between murder and
robbery. The researcher recorded the number of murders and
robberies per 100,000 population for a random selection of cities.
Help the researcher to find the relationship between the two
variables.
Murders, x 2.4 2.7 5.6 2.6 2.1 3.3 6.6 5.7
Robberies, y 25 14 151 91 80 49 173 96
a. Calculate the correlation coefficient, R. Interpret the
calculated value of R.
b. Briefly comment on the relationship between the two variables
based on the correlation
coefficient, R. (1 Mark)
c. Calculate the slope, b.
d. Calculate the intercept, a.
e. Write the regression equation.
(1 Mark)
A) | |||||||
S.NO. | X | Y | Xn-ẋ | Yn-ẏ | (Xn-ẋ)^2 | (Yn-ẏ)^2 | (Xn-ẋ)/Sx X (Yn-ẏ)/Sy |
1 | 2.4 | 25 | -1.475 | -59.875 | 2.175625 | 3585.016 | 0.8762 |
2 | 2.7 | 14 | -1.175 | -70.875 | 1.380625 | 5023.266 | 0.8262 |
3 | 5.6 | 151 | 1.725 | 66.125 | 2.975625 | 4372.516 | 1.1317 |
4 | 2.6 | 91 | -1.275 | 6.125 | 1.625625 | 37.51563 | -0.0775 |
5 | 2.1 | 80 | -1.775 | -4.875 | 3.150625 | 23.76563 | 0.0859 |
6 | 3.3 | 49 | -0.575 | -35.875 | 0.330625 | 1287.016 | 0.2047 |
7 | 6.6 | 173 | 2.725 | 88.125 | 7.425625 | 7766.016 | 2.3826 |
8 | 5.7 | 96 | 1.825 | 11.125 | 3.330625 | 123.7656 | 0.2014 |
Total | 31 | 679 | 22.395 | 22218.88 | 5.6312 | ||
ẋ=31/8 | 3.875 | ||||||
ẏ=679/8 | 84.875 | ||||||
Sx=√22.395/7 | 1.789 | ||||||
Sy=√22218.88/7 | 56.339 | ||||||
Formula | R=1/n-1∑[(Xn-ẋ)/Sx X (Yn-ẏ)/Sy}]=5.6312/7 | 0.804 | |||||
Answer | R=0.804 | ||||||
R is positive and close to 1, which means there is strong relation between murder and robbery | |||||||
B) | |||||||
Positive correlation mean that both the variables move in the same direction. | |||||||