Correlation Analysis. The controller of Berry Electronics Company would like to know how closely the incur¬ rence of factory overhead in the company’s Semiconductor Manufacturing Department correlates with machine hours. Total factory overhead over the past 12 months is $108,000, and 5,760 machine hours were logged in for the same period. The sum of the machine hour differences from average [2(x. - x)2] is 850, and the sum of the factory overhead cost differences from average [2(jy. — y)2] is $3,400. The machine hour differences from aver¬ age multiplied by the factory overhead cost differences from average and summed [Z(xj - x)(y. — y)] is 1,564.

Required: Compute the coefficient of correlation, r, and the coefficient of determination, r2, for factory over¬ head and machine hours in the Semiconductor Manufacturing Department.