Answer to Question #296298 in Statistics and Probability for nowrin

Question

The given data represents the Sales of Companies (Sales ($000)), Advertisement Cost(Ads

($000)) and Employee number (Number of Employess) of 20 U.S. companies.

a. Construct a Cumulative Frequency Distribution Table of the Sales of the Companies.

b. Construct an Ogive of the variable Advertisement Cost.

c. Construct a Histogram of the variable Emplyee Number.

d. Assess the relationship between Sales of Companies and Employee number of the U.S. companies.

Answer 1

a)

Cumulative frequency is the sum of frequencies of all classes less than and equal to a particular class.

Cumulative frequency of a class = sum of frequencies of previous classes + frequency of selected class

b) Ogive is a graph used to depict the cumulative frequency of a variable.

c)

d) To assess the relationship between two variables, we use correlation.

Correlation measures the strength and direction of the relationship between 2 variables.

For the two variables, sales of companies and no. of employees, the correlation is -0.2357

(Correlation has been calculated in excel using the function '=CORREL(array1:array2)' )

Since the correlation is negative, it means that there is an inverse relationship between the two variables i.e. as one variable increases, the other decreases and vice versa.

A correlation of -0.2357 is not that high; it indicates that the relationship between the two variables is moderate or not strong.