Example of product moment correlation, Mathematics

Assignment Help:

Example of Product moment correlation

The given data was acquired during a social survey conducted in a described urban area regarding the yearly income of described families and the corresponding expenditures.

Family

(x)Annual income £ 000

(y)Annual expenditure £ 000

xy

x2

Y2

A

420

360

151200

176400

129600

B

380

390

148200

144400

152100

C

520

510

265200

270400

260100

D

610

500

305000

372100

250000

E

400

360

144000

160000

129600

F

320

290

92800

102400

84100

G

280

250

70000

78400

62500

H

410

380

155800

168100

144400

J

380

240

91200

144400

57600

K

300

270

81000

90000

72900

Total

4020

3550

1504400

1706600

1342900

Required

Compute the product moment correlation coefficient briefly comment on the value acquired

The produce moment correlation:

1701_Example of Product moment correlation 1.png

Workings:

x¯  = 4020/10 = 402                 

y¯ = 3550/10 = 355

1442_Example of Product moment correlation 2.png

= 0.89

Comment: The value acquired 0.89 suggests that the correlation between annual expenditure and annual income is high and positive. This shows that the more one earns the more one spends.


Related Discussions:- Example of product moment correlation

Definition of functions, Definition: An equation is considered as function...

Definition: An equation is considered as function if for any x in the domain of the equation (the domain is the entire x's which can be plugged into the equation) the equation wil

Homogeneous odes, how do you solve a homogeneous ode that''s not in a multi...

how do you solve a homogeneous ode that''s not in a multiplication or division form

Pre-calculas, find the polar coordinates of each point with the given recta...

find the polar coordinates of each point with the given rectangular coordinates. (-(squareroot(3)),3

In how many years is the population expected to be 42, The population of a ...

The population of a particular city is increasing at a rate proportional to its size. It follows the function P(t) = 1 + ke 0.1t where k is a constant and t is the time in years.

Calculate the cost make use of trigonometric functions, In this task you ar...

In this task you are required to make use of trigonometric functions, research and use the Monte Carlo method of integration to determine areas under curves and perform calculation

Calculate the gross pay, 1. Simon's monthly take home pay (after taxes) is ...

1. Simon's monthly take home pay (after taxes) is $2200, if he pays 19%  of his gross pay(before taxex) in tax, what is his gross pay? 2 . Convert the following quantities to th

Shares and dividends, suresh invested rs.1080 in shares of face value rs.50...

suresh invested rs.1080 in shares of face value rs.50 at rs.54.After receiving dividend on them at 8% he sold them at 52.In each of the transaction he paid 2 % brokerage.Hpw much d

Calculate the difference in payments of home mortgage loan, You have just r...

You have just renegotiated the interest rate of your home mortgage loan. (This is called rate modification.)  The original loan of $400,000 carries an interest rate is 6% has an or

Write Your Message!

Captcha
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!

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