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

= 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

Differential equations, Find the normalized differential equation which has...

Find the normalized differential equation which has {x, xex} as its fundamental set

Green function, greens function for x''''=0, x(1)=0, x''(0)+x''(1)=0 is G(t...

greens function for x''''=0, x(1)=0, x''(0)+x''(1)=0 is G(t,s)= {1-s for t or equal to s

Distance traveled, a) Determine the distance traveled among t = 0 and t =∏...

a) Determine the distance traveled among t = 0 and t =∏/2 by a particle P(x, y) whose position at time t is given by Also check your result geometrically. (5) b) D

Initial value problems, Write a Matlab function MyIVP that solves an initia...

Write a Matlab function MyIVP that solves an initial-value problem (IVP) for a system of ordinary differential equations (ODEs) of the form x ?(t) = f (t, x(t)), where f : R × Rn ?

Area with polar coordinates - parametric equations, Area with Polar Coordin...

Area with Polar Coordinates In this part we are going to look at areas enclosed via polar curves. Note also that we said "enclosed by" in place of "under" as we usually have

Find out that the relation is an equivalent relation or not, Let m be a pos...

Let m be a positive integer with m>1. Find out whether or not the subsequent relation is an equivalent relation. R = {(a,b)|a ≡ b (mod m)} Ans: Relation R is illust

Finite population correction factor or fpcf), Finite Population Correction ...

Finite Population Correction Factor Or Fpcf) If a specified population is relatively of small size and sample size is more than 5 percent of the population then the standard er

Number theory, number theory trivia

number theory trivia

1, 5 hockey pucks and three hockey sticks cost $23. 5 hockey pucks and 1 ho...

5 hockey pucks and three hockey sticks cost $23. 5 hockey pucks and 1 hockey stick cost $20. How much does 1 hockey puck cost?

Real Analysis/Advanced Calculus (Needs to be a full proof), Both need to be...

Both need to be a full page, detailed proof. Not just a few lines of proof. (1) “Every convergent sequence contains either an increasing, or a decreasing subsequence (or possibly

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages