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Correlation Coefficient

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Correlation Coefficient

  • This topic has 3 replies, 2 voices, and was last updated 7 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • November 12, 2017 at 9:01 pm #415448
    agnieszkap
    Member
    • Topics: 4
    • Replies: 4
    • ☆

    Dear Sir,

    Could you please have a look what am I doing incorecctly in the following example:

    An ice-cream supplier has recorded some sales data which he believes show a relationship between temperature and sales. The results shown below are for 10 sample days in the summer.

    ?x = 210?y = 187?x2 = 4,634?y2 = 3,865?xy = 4,208

    The correlation coefficient is nearest to:

    Select one:
    a.
    0.84
    b.
    0.98
    c.
    0.92
    d.
    0.88

    =((10*4208)-(210*187))/ ?((10*4634)-(210*210))*((10*3865)-(187*187)=
    =(42,080-39,270)/?(46,340-44,100)*(38,650-34,969)=
    =2,810/?(2,240*3,681)= 2,810/?8,245,440= 2,810/908= 3.09

    I’ve checked it a few times.
    There is no such an answer 🙁
    Could you help, please?

    November 13, 2017 at 9:49 am #415506
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54657
    • ☆☆☆☆☆

    The square root of 8,245,440 is 2,871 (and 908 as you have written).

    Therefore the coefficient of correlation is 2,810/2,871 = 0.98

    November 15, 2017 at 8:59 pm #416024
    agnieszkap
    Member
    • Topics: 4
    • Replies: 4
    • ☆

    I think I forgot to put |”0″ in 8,245,440 and that’s why I got 908.
    I’m getting 2,871 and then 0.98.
    Thank you!

    November 16, 2017 at 9:01 am #416062
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54657
    • ☆☆☆☆☆

    You are welcome 🙂

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • The topic ‘Correlation Coefficient’ is closed to new replies.

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