In: Finance
Using the following 5 year data series, calculate the correlation between interest rates and US new home sales.
Year | Home sales (thousands) | Interest rate (%) |
1 | 520 | 8 |
2 | 673 | 5 |
3 | 631 | 3 |
4 | 581 | 8 |
5 | 658 | 10 |
The answer is -.263
Please show how to get there
x | |
1 | 520 |
2 | 673 |
3 | 631 |
4 | 581 |
5 | 658 |
Sum of x | 3063 |
y | |
1 | 8 |
2 | 5 |
3 | 3 |
4 | 8 |
5 | 10 |
Sum of y | 34 |