In: Statistics and Probability
Five observations taken for two variables follow.X= 6 10 15 20 27 Y= 6 10 6 18 12 a. What does the scatter diagram indicate about a relationship between and ? b. Compute the sample covariance (to 2 decimal). c Compute the sample correlation coefficient (to 3 decimals). What can you conclude, based on your computation of the sample correlation coefficient?
By plotting the X on x axis and Y on y axis we get this scatter plot . Which shows that there is a positive relationship between X and Y . the relationship is good but not extremely strong .
Then the correlation coefficient between X and Y is
r = 0.6002
So clearly r is positive. That means there is positive association between X and Y . And as r is greater than 0.5 but less than 0.8 we can say there is moderate relationship between them .