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

Pemdas, 15(4444+555)+(131313+333)

15(4*4*4*4*+5*5*5)+(13*13*13+3*3*3)

Standard basis vectors -application of scalar multiplication, Standard Basi...

Standard Basis Vectors Revisited In the preceding section we introduced the idea of standard basis vectors with no really discussing why they were significant. We can now do

Find out the volume of the solid method of disks , Find out the volume of t...

Find out the volume of the solid obtained by rotating the region bounded by y = x 2 - 4x + 5 , x = 1 , x = 4 , and the x-axis about the x-axis. Solution : The firstly thing t

Probability - applications of integrals, Probability - Applications of inte...

Probability - Applications of integrals In this final application of integrals that we'll be looking at we are going to look at probability. Previous to actually getting into

Big-m method.., example

example

Concrete operational stage, Concrete Operational Stage : Piaget describes...

Concrete Operational Stage : Piaget describes a five-year-old boy playing with a collection of pebbles. First, he laid them in a line and counted along the line from left to righ

Proof integral function, Proof of: if f(x) > g(x) for a x b th...

Proof of: if f(x) > g(x) for a x b then a ∫ b f(x) dx > g(x). Because we get f(x) ≥ g(x) then we knows that f(x) - g(x) ≥ 0 on a ≤ x ≤ b and therefore by Prop

Derive expressions for the mean and variance, On each day t of n days, N cu...

On each day t of n days, N customers of a supermarket were sampled and the number Xt expressing dissatisfaction was recorded. The results suggested that there were good and bad day

Trigonometry, if theta is a positive acute angle and 2sin theta +15cos squ...

if theta is a positive acute angle and 2sin theta +15cos square theta=7 then find the value of cot theta

Define markov process, Define Markov process. Markov process is one in...

Define Markov process. Markov process is one in which the future value is independent of the past values, given the current value

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages