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Find the value of the linear correlation coefficient r. The paired data below consist of the costs of advertising (in thousands of dollars) and the number of products sold (in thousands):

Cost 9 2 3 4 2 5 9 10
Number 85 52 55 68 67 86 83 73
A.-0.071
B. 0.708
С. 0.235
D. 0.246

1 Answer

3 votes

Answer:

B.) 0.708

Explanation:

Given the following data :

Cost of advertising (in thousands of $) (x) :

9

2

3

4

2

5

9

10

Number of product sold (in thousands of $) (y) :

85

52

55

68

67

86

83

73

Using the pearson Coefficient of correlation calculator, the correlation Coefficient obtained for the data above is : 0.7077 = 0.708 (3 decimal places).

This depicts a strong positive correlation between the cost of advertising and the number of product sold as the correlation Coefficient is both positive and close to 1. This means payibg a high cost for advert will almost usually result in a corresponding increase in the number of products sold.

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