Answer to Question #217861 in Finance for Beauty Magadlela

Question

Down-To-Earth sells houses. The following table represents the selling price of a house (y) in thousands of rands and the number of houses sold at that price (x):

x 5 15 19 7

y 500 900 1500 2 000

The correlation coefficient of a linear regression between x and y is approximately

[1] 5,72.

[2] −0,16.

[3] 0,16.

[4] 4,00.

[5] none of the above

Answer 1

By using Excel

= CORREL(B1:E1,B2:E2)

R=0.16