Question

Find the value of the linear correlation coefficient R. The paired data below consists of the costs of advertising (in thousands of dollars) and the number of products (in thousands).

Cost : 9, 2, 3, 4, 2, 5, 9, 10


Number: 85, 52, 55, 68, 67, 86, 83, 73

Answer 1

0.708

Explanation:

The calculation of the value of the linear correlation coefficient R is shown below:-

Cost Number

9 85

2 52

3 55

4 68

2 67

5 86

9 83

10 73

Value of linear correlation coefficient R is 0.70772136

or

= 0.708

For clarification look at the spreadsheet which has been attached and uses the following steps which are as follows

Step 1

To activate the data analysis option:- Go to file menu click on add-in option and choose the manage option and select Excel Add-in option click on Ok after that choose Analysis Tool Pak

Step 2

After following step 1 choose data tab and select data analysis tab and select correlation and click ok

Step 3

After selecting correlation to select the range from $A$2:$B$9 and then click OK to reach the value of linear correlation coefficient R.