Following are the data on percentage of investments in energy securities and tax efficiency from Exercises 4.50 and 4.88.

a. Obtain the linear correlation coefficient.
b. Interpret the value of r in terms of the linear relationship between the two variables in question.
c. Discuss the graphical interpretation of the value of r and verify that it is consistent with the graph you obtained in the corresponding exercise in Section 4.2.
d. Square r and compare the result with the value of the coefficient of determination you obtained in the corresponding exercise in Section 4.3.

Transcribed Image Text:

x 3.1 3.2 3.7 4.3 4.0 5.5 6.7 74 74 10.6 y|98. I 94.7 92.0 89.8 87.5 85.0 82.0 77.8 72.1 53.5