Answer to Question #203725 in Statistics and Probability for mohammad

Question

Mr. Ali runs a gift shop in the Defense area, Karachi. He advertises weekly in the local newspapers and is considering increasing his advertising budget. Before doing so, he decides to evaluate the past effectiveness of these advertisements. Five weeks are sampled, and the advertising expenses (in PKR) and sales volume for each is shown in the Table 2. What is correlation coefficeint value?

 

S.No.

Sales (PKR 100)

Advertising (PKR 100)

1.00

6.00

4.10

2.00

8.00

6.72

3.00

6.00

5.05

4.00

10.00

7.26

5.00

6.00

2.69

Answer 1

Import the data in the excel and then use function =CORREL(B2:B6,C2:C6)

Correlation coefficeint = 0.856324