Correlation and coefficient of determination


Question 1: Construct a scatter diagram for the following data:

x    1       2      3     4      5      6     7      8      9    10
y    10    10    11    12    12    13    15    18    21    25

x    11    12    13    14    15    16    17    18     19     20
y    26    29    33    39    46    60    79    88    100    130

Find the coefficient of correlation and the coefficient of determination. Now find the log of y and recalculate the two statistics and interpret your results.

Question 2: The mileage recorded for a sample of company vehicles during a given week yielded the following data:

138    164    150    132    144    125    149    157
146    158    140    147    136    148    152    144
168    126    138    176    163    119    154    165
146    173    142    147    135    153    140    135
161    145    135    142    150    156    145    128

Determine the range, quartile deviation and standard deviation from these figures. The data below now becomes available on the mileages of the other ten cars belonging to the company.

234    204    267    198    179    210    260    290    198    199

Recalculate the range, quartile deviation and standard deviation, and comment on the changes to these statistics. You are also required to create a scatter graph and a histogram from the initial data using Microsoft Excel graphs and charts.

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Accounting Basics: Correlation and coefficient of determination
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