A property analyst is examining the relationship between the City Council’s valuation on residential property and the market value (selling price) of the properties. A random sample of 8 recent property transactions were examined. Calculate the correlation coefficient (rounded off to two decimals).   City Council valuation (R1000) Market value (R1000) 1 12 65 2 45 220 3 32 142 4 50 310 5 28 196 6 56 364 7 18 116 8 40 260

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter4: Equations Of Linear Functions
Section4.5: Correlation And Causation
Problem 24PFA
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A property analyst is examining the relationship between the City Council’s valuation on residential property and the market value (selling price) of the properties. A random sample of 8 recent property transactions were examined. Calculate the correlation coefficient (rounded off to two decimals).

 

City Council valuation (R1000)

Market value (R1000)

1

12

65

2

45

220

3

32

142

4

50

310

5

28

196

6

56

364

7

18

116

8

40

260

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SSxy = 10319.875

SSx = 1666.875

SSy = 70990.875

 = 34.4286

69084

 = 209.125

b = 6.1912

 
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