Question

Price of eggs and milk: The following table presents the average price in dollars for a dozen eggs and a gallon of milk for each month from May through December

2011

.

Dozen Eggs

Gallon of Milk

1.88

3.43

1.80

3.47

1.94

3.58

1.96

3.58

1.67

3.40

1.96

3.47

1.83

3.50

2.01

3.52

(b) Compute the correlation coefficient between the price of eggs and the price of milk. Round the answer to at least three decimal places.

Answer 1

We can directly calculate correlation coefficient by using Excel.

Step 1)  Enter data in Excel.

Step 2 )  Then use =CORREL command and select two separate column data  >> ok

Correlation coefficient = r= 0.690