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

Adding equally sized groups-prerequisites for multiplication, Adding Equall...

Adding Equally Sized Groups: Once children have had enough practice of making groups of equal size, you can ask them to add some of these equal groups. They can now begin to atte

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

Indices assignment, simplify the following: 3^5/2-3^1/2

simplify the following: 3^5/2-3^1/2

Lance has 70 cents margaret has 3/4 who has the most money, Lance has 70 ce...

Lance has 70 cents, Margaret has three-fourths of a dollar, Guy has two quarters and a dime, and Bill has six dimes. Who has the most money? Lance has 70 cents. Three-fourths o

Dropped down the rational expression to lowest terms, Carry out the indicat...

Carry out the indicated operation and dropped down the answer to lowest terms. (x 2 - 5x -14/ x 2 -3x+2) . (x 2 - 4)/x 2 -14x+49) Solution This is a multiplication.

The definition of the limit, The Definition of the Limit In this secti...

The Definition of the Limit In this section we will look at the precise, mathematical definition of three types of limits we'll be looking at the precise definition of limits

Graphing sets of numbers, Q. Graphing Sets of Numbers? Ans. To gr...

Q. Graphing Sets of Numbers? Ans. To graph a set of numbers on a number line means to plot, or locate, those positions on the line. The number that corresponds to a poin

Show that the height h of the tower, The angle of elevation of the to...

The angle of elevation of the top of a tower from a point on the same level as the foot of the tower is α. On advancing 'p' meters towards the foot of the tower, the angle of eleva

Curvature - three dimensional space, Curvature - Three Dimensional Space ...

Curvature - Three Dimensional Space In this part we want to briefly discuss the curvature of a smooth curve (remind that for a smooth curve we require → r′ (t) is continuou

Calculus, Trig function

Trig function

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages