User Account

All Pages

Calculate the correlation coefficient for given two variable

Assignment Help Basic Statistics
Reference no: EM131655173

Question: Farmers National Bank issues MasterCard credit cards to its customers. A main factor in determining whether a credit card will be profitable to the bank is the average monthly balance that the customer will maintain on the card that will be subject to finance charges. Bank analysts wish to determine whether there is a relationship between the average monthly credit card balance and the income stated on the original credit card application form. The following sample data have been collected from existing credit card customers:

1471_36.png

a. Indicate which variable is to be the independent variable and which is to be the dependent variable in the bank's analysis and indicate why.

b. Construct a scatter plot for these data and describe what, if any, relationship appears to exist between these two variables.

c. Calculate the correlation coefficient for these two variables and test to determine whether there is a significant correlation at the α = 0.05 level.

Reference no: EM131655173

Questions Cloud

Discuss explanation of the sample correlation coefficient : The Federal No Child Left Behind Act requires periodic testing in standard subjects. A random sample of 50 junior high school students from Atlanta.
Relate managerial hubris to ethical decision making : The 1920's Farrow Bank failure: a case of managerial hubris. Relate managerial hubris to ethical decision making and overall impact on the business environment.
Find the number of card uses during the past month : Using an a = 0.10 level, test to determine whether there is a significant linear relationship between account balance and the number of card.
Describe one of the new superbugs such as cre : Describe one of the new superbugs such as CRE, MRSA, Clostridium difficile, etc. that are causing havoc in our health care facilities
Calculate the correlation coefficient for given two variable : Calculate the correlation coefficient for these two variables and test to determine whether there is a significant correlation at the a = 0.05 level.
Should the government attempt to change societys values : Politicians often speak about the United States' loss of family values and ethics. Should the government attempt to change society's values and ethics by passin
Correlation coefficient between amazon net income and sales : Calculate the correlation coefficient between Amazon's net income/loss and sales figures for the period 1995 to 2007.
What cells does it attack in our bodies : What is the reservoir for the Ebola virus? Can it spread to household pets? What cells does it attack in our bodies
Positive correlation in store size and average monthly sales : Conduct a hypothesis test to determine if a positive correlation exists between store size and average monthly sales. Use a level of significance of 0.025.

Reviews

Write a Review

Basic Statistics Questions & Answers

  How many different arrangements are possible if there are 2

1. a bus starts with eight people 2 of which are jack and diana and stops at 12 locations. assuming nobody else gets on

  Information on two types of photocopying machines

You are given the following information on two types of photocopying machines. The Exone has a fixed cost of £400 per annum and a running cost of £20 per 1000 copies.

  Discuss about sample vs population in the area of research

This problem belongs to Basic Statistics and discuss about sample vs population in the area of research and it discusses the importance of these two

  Use excel to set up an amortization schedule

A customer with a trade-in offers the store a $260 cash price for the cabinet. Is that a better deal (for the customer) than the store is offering? On Mary's 16th birthday, her parents invest on her behalf an amount of $5,000 into an account that ..

  Correlation coefficient between the weights

Check that the left hand side of (9) is the standardized slope. Hint: work out the correlation coefficient between the weights and the lengths.

  Evaluate the probability values using normal distribution

Computing the probability values using normal distribution - The data set has a bell-shaped distribution. Between what two prices do 68% of the houses lie?

  What is the probability that she never misses

Find the mean and standard deviation of the number of bull s-eyes she may get.- What's the probability that she never misses?

  Width of a confidence interval

The width of a confidence interval will be:

  Probability that lot containing exactly two defective games

QUALITY CONTROL Electronic baseball games manufactured by Tempco Electronics are shipped in lots of 24. Before shipping, a quality-control inspector randomly.

  What probability distribution best model the number of

a producer of a cartain type of electronic component ships to suppliers in lots of twenty. suppose that 60 of all such

  Determining the probability of sat scores

Determine the probability that their SAT scores will differ by more than 50 points?

  Complete and report anova table for this design

In the Distance problems, the kids are given a Rate (speed) that a vehicle is going, as well as a Time that the vehicle travels, and asked to calculate the Distance travelled. In the Rate problems they are asked to compute Rate from the other two ..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd