In an attempt to determine whether a linear relationship exists between the price of a home (x in $1,000s) and the number of days it takes to sell the home (y), a real estate agent collected the following data from recent sales in his city a Calculate the covariance What kind of linear relationship exists b Calculate and interpret the correlation coefficient 265 225 160 325 430 515 180 423 136 125 120 140 145 121 122 145

Question: In an attempt to determine whether a linear relationship exists between the price of a home (x in $1,000s) and the number of days it

In an attempt to determine whether a linear relationship exists between the price of a home (x in $1,000s) and the number of days it takes to sell the home (y), a real estate agent collected the following data from recent sales in his city.

265 225 160 325 430 515 180 423 136 125 120 140

a. Calculate the covariance. What kind of linear relationship exists?

b. Calculate and interpret the correlation coefficient.

265 225 160 325 430 515 180 423 136 125 120 140 145 121 122 145

Step by Step Solution

★★★★★

3.37 Rating (163 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a s xy 4419757 63139 The covariance suggests that there is a ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Essentials Business Statistics Questions!

In an attempt to determine whether a relationship exists between the price of a home and the number of days it takes to sell the home, a real estate agent collects data on the recent sales of eight...

In an attempt to determine whether or not a linear relationship exists between the price of a home (in $1,000s) and the number of days it takes to sell the home, a real estate agent collected data...

A psychology class performed an experiment to determine whether a recall score in which instructions to form images of 25 words were given differs from an initial recall score for which no imagery...

In an attempt to determine whether a linear relationship exists between the price of a home and the number of days it takes to sell the home, a real estate agent collected the following data from...

In an attempt to determine whether a relationship exists between the price of a home and the number of days it takes to sell the home, a real estate agent collected the following data from recent...

In an attempt to determine whether or not a linear relationship exists between the price of a home (in $1,000s) and the number of days it takes to sell the home, a real estate agent collected data...

Chapter Six Union Organizing Campaigns This chapter is the first of two chapters that examine how unions organize new bargaining units and how and why employers attempt to avoid being unionized....

4. Let A= (G) -4 1. Find the eigenvalues and eigenspaces of A. 2. Find an inverse matrix P and a diagonal matrix D such that A= PDP-1.

Dave Fletcher, the general manager of North Carolina Engineering Corporation ( NCEC), thinks that his firms engineering services contracted to highway construction firms are directly related to the...

4. Find out if you can declare a variable of type DWORD and assign it a negative value. What does this tell you about the assemblers type checking?

Impact of the Credit Crisis on MNC Value Much of the attention to the credit crisis was focused on its adverse effects on financial institutions. Yet, many other types of firms were affected as well....

Patrons at a local restaurant were asked to rate their recent experience at the restaurant with respect to its advertised atmosphere of upbeat, comfortable, and clean. Possible responses included...

A survey conducted by CBS News asked parents about the professions they would want their children to pursue. The results are summarized in the following table. Profession ..............Parents...

The one-year return (in %) for 24 mutual funds is as follows: a. Construct a frequency distribution using classes of 220 up to 210, 210 up to 0, etc. b. Construct the relative frequency, the...

NEED SOLUTION WITHIN 40/50 MINUTES WITH STEP BY STEP APPROACH to get UPVOTE. 1. Each morning a student arrives at his or her bus stop. The passing time for a bus is uniformly distributed between 8:00...

solve both questions hand written and show work 3. Given the following cumulative distribution function (CDF) X4 (a) Using the above CDF, evaluate P(-1

A new start up requires JMD35,000, and has a required rate of return of 7% and the expected cash flows below, how much should a logical financial manager invest in the opportunity to make a marginal...