b. Please compute the coefficient of correlation
b. Please compute the
coefficient of correlation
Homework Answers
| A | B | C | D | E | F | G | H | I | J | ||
| 1 | Salary | 1.2 | 0.7 | 1.5 | 0.3 | 1.1 | 0.8 | 0.5 | 1.3 | 1.7 | 0.2 |
| 2 | Revenue | 10.8 | 4.7 | 9.5 | 2.2 | 11.8 | 11.2 | 5.7 | 8.7 | 9.5 | 1.1 |
| Covariance | 1.52 | (Covariance.S(A1:J1,A2:J2) | |||||||||
| Standard Deviation of Salary | 0.51 | (STDEV.S(A1:J1) | |||||||||
| Standard Deviation of Revenue | 3.84 | (STDEV.S(A2:J2) | |||||||||
| Correlation=Covariance/(Standard Deviation of Salary * Standard Deviation of Revenue) | 0.78 | ||||||||||
Correlation is the ratio of covariance to product of
standard deviation of salary and standard deviation of
Revenue.
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