Question

1. The following attachment contains the values of two different financial stocks during a one month...

1. The following attachment contains the values of two different financial stocks during a one month period. What is the coefficient of correlation between the two values?

Date APPEL   GOOGLE
2/22/2017 137.11 829.59
2/23/2017 136.52 830.46
2/24/2017 136.66 848.4
2/27/2017 136.92 852.11
2/28/2017 136.99 848.78
3/1/2017 139.78 847.2
3/2/2017 138.96 845.61
3/3/2017 139.77 845.53
3/6/2017 139.33 843.25
3/7/2017 139.52 838.67
3/8/2017 139 835.36
3/9/2017 138.67 831.9
3/10/2017 139.13 827.78
3/13/2017 139.19 829.08
3/14/2017 138.99 830.63
3/15/2017 140.46 835.23
3/16/2017 140.69 823.21
3/17/2017 139.99 829.28
3/20/2017 141.46 828.64
3/21/2017 139.83 831.33
3/22/2017 141.41 830.76

a. 0.60

b. -0.86

c. -0.42

d. -0.61

Homework Answers

Answer #1

For the given values

Key

X: X Values=APPEL
Y: Y Values= GOOGLE
Mx: Mean of X Values
My: Mean of Y Values
X - Mx & Y - My: Deviation scores
(X - Mx)2 & (Y - My)2: Deviation Squared
(X - Mx)(Y - My): Product of Deviation Score


X Values
∑ = 2920.38
Mean = 139.066
∑(X - Mx)2 = SSx = 43.735

Y Values
∑ = 17562.8
Mean = 836.324
∑(Y - My)2 = SSy = 1488.785

X and Y Combined
N = 21
∑(X - Mx)(Y - My) = -108.314

Hence

r Calculation
r = ∑((X - My)(Y - Mx)) / √((SSx)(SSy))

r = -108.314 / √((43.735)(1488.785)) = -0.4245

So correlation coefficient is -0.42

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