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

Find an example of congruential unit random number generator, 1. Suppose th...

1. Suppose the arrival times of phone calls in a help centre follow a Poisson process with rate 20 per hour (so the inter-arrival times are independent exponential random variables

Reduced Row-Echelon Form, The augmented matrix from a system of linear equa...

The augmented matrix from a system of linear equations has the following  reduced row-echelon form (a)  How many equations are there in the system?  (b)  How many variab

Calculate time interval, From top of a tower a stone is thrown up and it re...

From top of a tower a stone is thrown up and it reaches the ground in time t1. A second stone is thrown down with the same speed and it reaches the ground in t2. A third stone is r

Determine how many valid fortran identifiers, A valid identifier in the pro...

A valid identifier in the programming language FORTAN contains a string of one to six alphanumeric characters (the 36 characters A, B,...., Z, 0, 1,...9) starting with a letter. De

Determine the probability, An insurance company/organization takes a keen i...

An insurance company/organization takes a keen interest in the age at which a person is insured. Thus a survey conducted on prospective clients indicated that for clients having th

Evaluate the length of the diagonal of the print, A framed print measures 3...

A framed print measures 36 by 22 in. If the print is enclosed by a 2-inch matting, Evaluate the length of the diagonal of the print? Round to the nearest tenth. See Example.

Collecting and interpreting data, Q. How to Collecting and interpreting dat...

Q. How to Collecting and interpreting data? Ans. Collecting and interpreting data is the most important job of a statistician. There are many types of studies and differe

Derive a linear system - gauss jordan elimination, Suppose that, on a certa...

Suppose that, on a certain day, 495 passengers want to fly from Honolulu (HNL) to New York (JFK); 605 passengers want to fly from HNL to Los Angeles (LAX); and 1100 passengers want

Polynomial time algorithm - first order query, For queries Q 1 and Q 2 , w...

For queries Q 1 and Q 2 , we say Q 1 is contained in Q 2 , denoted Q 1 ⊆ Q 2 , iff Q 1 (D) ⊆ Q 2 (D) for every database D. The container problem for a fixed Query Q 0 i

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