Question
The following table shows the amount of money (in $1000's) spent on marketing per month, at ABC furniture and the amount of corresponding monthly sales.
The following table shows the amount of money (in $1000's) spent on marketing per month, at ABC furniture and the amount of corresponding monthly sales.
ABC Furniture wants to see if marketing money spent is a good predictor of sales.
Given:n = 6SumX = 44SumY = 38SumXY = 288SumX2= 388SumY2= 250
a)Calculate the correlation coefficient.Round final answer to 4 decimal places.(3marks)
r=[n x (Sum XY) - (sum X)(Sum Y)
[n x (Sum(X2)) - (SumX)2] x[n x (Sum Y2) - (Sum Y)2]
b)Interpret the Correlation Coefficient (2 marks)
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Finite Mathematics and Its Applications
Authors: Larry J. Goldstein, David I. Schneider, Martha J. Siegel, Steven Hair
12th edition
978-0134768588, 9780134437767, 134768582, 134437764, 978-0134768632
