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The scatter chart in the following figure was created using sample data for profits and market capitalizations from the following sample of firms in the

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The scatter chart in the following figure was created using sample data for profits and market capitalizations from the following sample of firms in the Fortune 500. Company Profits ($ millions) Market Capitalization ($ millions) Alliant Techsystems 313.20 ,891.90 Amazon.com 631.00 81,458.60 AmerisourceBergen 706.60 10,087.60 Avis Budget Group -29.00 1,175.80 Boeing 4,018.00 55,188.80 Cardinal Health 959.00 14,115.20 Cisco Systems 5,490.00 97,376.20 Coca-cola 3,572.00 57,130.50 ConocoPhillips 12,436.0 95,251.90 Costco Wholesale 1,462.00 36,461.20 CVS Caremark 3,461.00 53,575.70 Delta Air Lines 54.00 7,082.10 Fidelity National Financial 369.50 3,461.40 FMC Technologies 99.80 12,520.30 Foot Locker 278.00 3,547.60 General Motors 9,190.00 32,382.40 Harley-Davidson 599.10 8,925.30 HCA Holdings 2,465.00 9,550.20 Kraft Foods 3,527.00 65,917.40 Kroger 602.00 13,819.50 Lockheed Martin 2,655.00 26,651.10 Medco Health Solutions 1,455.70 21,865.90 Owens Corning 276.00 3,417.80 Pitney Bowes 617.50 3,681.20 Procter & Gamble 11,797.00 182,109.90 Ralph Lauren 567.60 12,522.80 Rockwell Automation 597.80 10,514.80 Rockwell Collins 534.00 8,560.50 United Stationers 109.00 1,381.60 United Technologies 1,979.00 66,606.50 UnitedHealth Group 5,142.00 53,469.40 200 000 150 000 Market Cap (millions of $) 100 000 50 000 5000 10 000 15 000 Profits (millions of $)(b) Calculate the covariance between prots and market capitalization. (Round your answer to three decimal places.) 127553205133 x Discuss what the covariance indicates about the relationship between prots and market capitalization. O The covariance indicates that there is some negative relationship between profits and market capitalization. O The covariance indicates that there is a strong positive relationship between profits and market capitalization. O The covariance indicates that there is no relationship between profits and market capitalization. O The covariance indicates that there is a strong negative relationship between profits and market capitalization. The covariance indicates that there is some positive relationship between prots and market capitalization

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