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

Estimate the greatest possible number of calculators, Martha has $20 to spe...

Martha has $20 to spend and would like to buy as several calculators as possible along with the money. The calculators that she needs to buy are $4.50 each. How much money will she

Determine the properties and query are definable in datalog, We now focus o...

We now focus on the use of Datalog for defining properties and queries m graphs. (a) Suppose that P is some property of graphs definable in Datalog. Show drat P is preserved und

Evaluate the slope of the tangent line, Evaluate the given limits, showing ...

Evaluate the given limits, showing all working: Using first principles (i.e. the method used in Example 1, Washington 2009, Using definition to find derivative ) find the

Calculate the ratio of the areas of three sectors, A circular disc of 6 cm ...

A circular disc of 6 cm radius is divided into three sectors with central angles 1200, 1500,900. What part of the circle is the sector with central angles 1200. Also give the ratio

Algorithm for division helping a child grasp, E1) Why don't you think of so...

E1) Why don't you think of some activities for the same purpose now? E2) Suggest, in detail, another activity for helping a child grasp the algorithm for division. We come to

Reduction-types of word problems related to subtraction, Reduction -when t...

Reduction -when the original amount and the balance or remainder are known, to find the part that has been given away. (e.g., there were 15 toffees in a container, and there are

Math, a business is owned by three people.the first owns 1/12 of the busine...

a business is owned by three people.the first owns 1/12 of the business and the second owns 1/6 of the business. what fractional part of the business is owned by the third person

Calculus with matrices, Calculus with Matrices There actually isn't a ...

Calculus with Matrices There actually isn't a whole lot to it other than to just ensure that we can deal along with calculus with matrices. Firstly, to this point we've onl

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