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You are attempting to determine whether the price of Dell computers is related to the price of Apple computers. Over the course of a year, you observe the following prices: (Assume this is just a sample of prices rather than the entire population)
Dell Apple $1000 ........ $2000
$1200 ........$2100
$1300 ........$2400
$1250 ........$2500
$1100 .......$2050
A.) What is the mean price for each type of computer?
B.) What is the covariance between the price of Dell and the price of Apple?
C.) What is the variance in the price of Dell
D.) What is the variance in the price of Apple
E.) What is the correlation between Dell and Apple prices?
F.) You find out that the website from which you recorded the price of Apple computers overstated there price. How will your covariance change if Old Apple = 0.7* New Apple? (Use covariance rules to answer this question rather than calculating the value)
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