Question

For a sample of eight houses, the area and cost of heating were recorded as given below:

Area (Square Feet)	Heating cost ($)
1100	532
1600	833
2000	906
1600	785
1900	911
2100	915
1200	643
2100	979

Find the sample correlation coefficient between area and heating cost. (Provide three decimal places)

Answer 1

1100 1600 2000 1600 1900 2100 1200 2100 585200 1210000 283024 1332800 2560000 693889 61812000 4000000 820836 1256000 2560000 616225 1730900 3610000 829921 1921500 4410000 837225 771600 1440000 413449 2055900 4410000 958441 532 90 785 643 979 13600 6504 11465900 24200000 5453010 Correlation Coefficient or Pearson Correlation is given by: 8(11465900) - (13600) (6504) 8(24200000) (136002 8(5453010) - (6504)2 3272800 - 0.968359 8640000 1322064 correlation coefficient, r-0.968 There is a very strong positive (uphill) linear relation between Area (x) and Heating Cost ()