In: Math
The chart below lists the sales in thousands of dollars based on
the advertising budget for that quarter. The regression equation is
Y' = 4.073 + 0.8351X. What is the correlation
coefficient?
Advertising ($hunderds) | Sales ($thousands) | ||
0 | 5 | ||
3 | 5.5 | ||
4 | 7 | ||
5 | 7.8 | ||
6 | 9 | ||
7 | 11 | ||
Multiple Choice
0.775
0.844
0.926
1.00
Advertising ($hunderds) (x) | Sales ($thousands)(y) | (x- mean of x) | (y - mean of y) | (x- mean of x)^2 | (y - mean of y)^2 | (x- mean of x)(y - mean of y) |
0 | 5 | -4.1667 | -2.5500 | 17.3611 | 6.5025 | 10.6250 |
3 | 5.5 | -1.1667 | -2.0500 | 1.3611 | 4.2025 | 2.3917 |
4 | 7 | -0.1667 | -0.5500 | 0.0278 | 0.3025 | 0.0917 |
5 | 7.8 | 0.8333 | 0.2500 | 0.6944 | 0.0625 | 0.2083 |
6 | 9 | 1.8333 | 1.4500 | 3.3611 | 2.1025 | 2.6583 |
7 | 11 | 2.8333 | 3.4500 | 8.0278 | 11.9025 | 9.7750 |
Total | 30.8333 | 25.0750 | 25.7500 |
After calculation, Correlation coefficient is = 0.926
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