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

Heaviside or step function limit, Heaviside or step function limit : Calcu...

Heaviside or step function limit : Calculates the value of the following limit. Solution This function is frequently called either the Heaviside or step function. We

Operations research, Explain Analytical Models in Operations Research with ...

Explain Analytical Models in Operations Research with Application

Quadratic equation, can anyone explain me the concept of quadratic equation...

can anyone explain me the concept of quadratic equation?

Determinarte, what is the differeance in between determinate and matrix .

what is the differeance in between determinate and matrix .

Probability, You''ve decided you want a plant for your room. At the gardeni...

You''ve decided you want a plant for your room. At the gardening store, there are 444 different kinds of plants (tulip, fern, cactus, and ficus) and 444 different kinds of pots to

Relative motion, how to find the minimum distance between any two particles...

how to find the minimum distance between any two particles which are in relative motion?

Estimate the probability, The following (artificial) data record the length...

The following (artificial) data record the length of stay (in days) spent on a psychiatric ward for 28 consecutive patients who have been sectioned under the mental health act, cla

Prove intercept of a tangent between two parallel, Prove that the intercept...

Prove that the intercept of a tangent between two parallel tangents to a circle subtends a right angle at the centre. Since Δ ADF ≅ Δ DFC ∠ADF = ∠CDF ∴ ∠ADC = 2 ∠CDF

Derivatives for logarithm, Logarithm Functions : Now let's briefly get the...

Logarithm Functions : Now let's briefly get the derivatives for logarithms.  In this case we will have to start with the following fact regarding functions that are inverses of ea

How far did the ?rst arrow goes, From a fixed point directly in front of th...

From a fixed point directly in front of the center of a bull's eye, Kim aims two arrows at the bull's eye. The first arrow nicks one point on the edge of the bull's eye; the second

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