Recall that covariance is a descriptive measure of the linear association between two variables. It can be found using the following formula where xi and yi represent the n pairs of data, and x and y are the sample means. sxy = (xi x)(yi y) n 1 Recall the given data. Company Profits ($ millions) Market Capitalization ($ millions) 1 313.20 1,941.90 2 631.00 81,508.60 3 706.60 10,037.60 4 29.00 1,225.80 5 4,018.00 55,138.80 6 959.00 14,065.20 7 6,490.00 97,426.20 8 8,572.00 157,080.50 9 12,436.00 95,201.90 10 1,462.00 36,511.20 11 3,461.00 53,625.70 12 854.00 7,132.10 13 369.50 3,511.40 14 399.80 12,570.30 15 278.00 3,597.60 16 9,190.00 32,332.40 17 599.10 8,975.30 18 2,465.00 9,600.20 19 3,527.00 65,867.40 20 602.00 13,869.50 21 2,655.00 26,601.10 22 1,455.70 21,815.90 23 276.00 3,467.80 24 617.50 3,631.20 25 11,797.00 182,159.90 26 567.60 12,472.80 27 697.80 10,564.80 28 634.00 8,610.50 29 109.00 1,331.60 30 4,979.00 66,556.50 31 5,142.00 53,519.40 For large data sets, this formula can be cumbersome to use so we will instead use the sample covariance function, COVARIANCE.S. This function has the format COVARIANCE.S(cells containing the x-values, cells containing the y-values). Copy and paste the given data above into an Excel spreadsheet so that Company is in column A, Profits ($ millions) is in column B, and Market Capitalization ($ millions) is in column C, as below. When pasting the dataset into Excel, follow these instructions: right click, select Paste