Question

In an effort to determine whether any correlation exists between the price of stocks of airlines, an analyst sampled six days of activity of the stock market spread out over 4 months. Using the following prices of Delta stock and Southwest stock, compute the coefficient of correlation. Stock prices have been rounded off to the nearest tenth for ease of computation.

Delta Southwest

45.96 38.76

46.5 45.41

47.93 15.8

51.78 49.58

52.17 44.34

46.96 18.0

Answer #1

Solution :

X | Y | XY | X^2 | Y^2 |

45.96 | 38.76 | 1781.41 | 2112.322 | 1502.3376 |

46.5 | 45.41 | 2111.565 | 2162.25 | 2062.0681 |

47.93 | 15.8 | 757.294 | 2297.285 | 249.64 |

51.78 | 49.58 | 2567.252 | 2681.168 | 2458.1764 |

52.17 | 44.34 | 2313.218 | 2721.709 | 1966.0356 |

46.96 | 18 | 845.28 | 2205.242 | 324 |

n | 6 |

sum(XY) | 10376.02 |

sum(X) | 291.30 |

sum(Y) | 211.89 |

sum(X^2) | 14179.98 |

sum(Y^2) | 8562.26 |

Numerator | 532.56 |

Denominator | 1204.87 |

r | 0.4420 |

r square | 0.1954 |

Xbar(mean) | 48.5500 |

Ybar(mean) | 35.3150 |

SD(X) | 2.4953 |

SD(Y) | 13.4124 |

b | 2.3758 |

a | -80.0281 |

coefficient of correlation = r = **0.4**

In an effort to determine whether any correlation exists between
the price of stocks of airlines, an analyst sampled six days of
activity of the stock market spread out over 4 months. Using the
following prices of Delta stock and Southwest stock, compute the
coefficient of correlation. Stock prices have been rounded off to
the nearest tenth for ease of computation. Delta Southwest 45.96
38.76 46.8 45.41 47.93 15.7 51.78 49.58 52.17 44.34 47.36 18.1
(Round the intermediate values to...

In an effort to determine whether any correlation exists between
the price of stocks of airlines, an analyst sampled six days of
activity of the stock market spread out over 4 months. Using the
following prices of Delta stock and Southwest stock, compute the
coefficient of correlation. Stock prices have been rounded off to
the nearest tenth for ease of computation.
Delta Southwest
45.96 38.76
47.4 45.41
47.93 15.8
51.78 49.58
52.17 44.34
47.56 17.7
r=?

In an effort to determine whether any correlation exists between
the price of stocks of airlines, an analyst sampled six days of
activity of the stock market spread out over 4 months. Using the
following prices of Delta stock and Southwest stock, compute the
coefficient of correlation. Stock prices have been rounded off to
the nearest tenth for ease of computation.
Delta
Southwest
45.96
38.76
47.3
45.41
47.93
16.1
51.78
49.58
52.17
44.34
46.96
18.4
(Round the intermediate values to...

In an effort to determine whether any correlation exists between
the price of stocks of airlines, an analyst sampled six days of
activity of the stock market. Using the following prices of Delta
stock and Southwest stock, compute the coefficient of correlation.
Stock prices have been rounded off to the nearest tenth for ease of
computation.
Delta 47.6 46.8 50.6 52.6 52.4 52.9 Southwest 15.1 15.4 16.0
15.6 16.4 18.2

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