The accompanying data represent the annual rates of return of two companies' stock for the past 12 years. Complete parts (a) through (k). Click here to view the data table. Click here to view the table of critical values of the correlation coefficient. (a) Draw a scatter diagram of the data treating the rate of return of Company 1 as the explanatory variable. Choose the correct graph below. O A. OB. 0.50- 0.50- 0.00- 0.00- -0.50- -0.3 RR of Company 2 -0.50- -0.3 RR of Company 1 0.0 0.3 0.0 0.3 VD. 0.30- 0.50- 0.00- 0.00- -0.30- -0.50- -0.5 0.0 0.5 -0.3 0.0 0.3 RR of Company 2 RR of Company 1 (b) Determine the correlation coefficient between rate of return of Company 1 and Company 2. The correlation coefficient is. (Round to three decimal places as needed.) RR of Company 1 RR of Company 1 RR of Company 2 RR of Company 2

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section: Chapter Questions
Problem 25SGR
icon
Related questions
Question
The accompanying data represent the annual rates of return of two companies' stock for the past 12 years. Complete parts (a) through (k).
Click here to view the data table. Click here to view the table of critical values of the correlation coefficient.
(a) Draw a scatter diagram of the data treating the rate of return of Company 1 as the explanatory variable. Choose the correct graph below.
O A.
OB.
0.50-
0.50-
0.00-
0.00-
-0.50-
-0.3
RR of Company 2
-0.50-
-0.3
RR of Company 1
0.0
0.3
0.0
0.3
VD.
0.30-
0.50-
0.00-
0.00-
-0.30-
-0.50-
-0.5
0.0
0.5
-0.3
0.0
0.3
RR of Company 2
RR of Company 1
(b) Determine the correlation coefficient between rate of return of Company 1 and Company 2.
The correlation coefficient is.
(Round to three decimal places as needed.)
RR of Company 1
RR of Company 1
RR of Company 2
RR of Company 2
Transcribed Image Text:The accompanying data represent the annual rates of return of two companies' stock for the past 12 years. Complete parts (a) through (k). Click here to view the data table. Click here to view the table of critical values of the correlation coefficient. (a) Draw a scatter diagram of the data treating the rate of return of Company 1 as the explanatory variable. Choose the correct graph below. O A. OB. 0.50- 0.50- 0.00- 0.00- -0.50- -0.3 RR of Company 2 -0.50- -0.3 RR of Company 1 0.0 0.3 0.0 0.3 VD. 0.30- 0.50- 0.00- 0.00- -0.30- -0.50- -0.5 0.0 0.5 -0.3 0.0 0.3 RR of Company 2 RR of Company 1 (b) Determine the correlation coefficient between rate of return of Company 1 and Company 2. The correlation coefficient is. (Round to three decimal places as needed.) RR of Company 1 RR of Company 1 RR of Company 2 RR of Company 2
Ques
= Homework: Ch 8 - Sampling Distributions
Critical values of the correlation coefficient
ars. Com
- X Int.
Critical Values for Correlation Coefficient
Data table
3 0,997
4 0.950
5 0.878
6 0.811
7 0.754
Year
Rate of Return of Company Rate of Return of Company
ble. Chod
6
2
2007
0.203
0.402
8
0.707
9 0.666
10 0.632
2008
0.310
0.510
2009
0.267
0.410
11 0.602
12 0.576
13 0.553
14 0.532
15 0.514
16 0.497
2010
0.195
0.426
2011
-0.101
-0.060
2012
- 0.130
-0.151
2013
-0.234
-0.357
2014
0.264
0.328
17 0.482
18 0.468
19 0.456
20 0.444
21 0.433
2015
0.090
0.207
2016
0.030
-0.014
2017
0.128
0.113
2018
- 0.035
0.027
22 0.423
23 0.413
24 0.404
25 0.396
Print
Done
26 0.388
27 0.381
Tne correlauon coeicient is-
(Round to three decimal places as needed.)
Print
Done
Transcribed Image Text:Ques = Homework: Ch 8 - Sampling Distributions Critical values of the correlation coefficient ars. Com - X Int. Critical Values for Correlation Coefficient Data table 3 0,997 4 0.950 5 0.878 6 0.811 7 0.754 Year Rate of Return of Company Rate of Return of Company ble. Chod 6 2 2007 0.203 0.402 8 0.707 9 0.666 10 0.632 2008 0.310 0.510 2009 0.267 0.410 11 0.602 12 0.576 13 0.553 14 0.532 15 0.514 16 0.497 2010 0.195 0.426 2011 -0.101 -0.060 2012 - 0.130 -0.151 2013 -0.234 -0.357 2014 0.264 0.328 17 0.482 18 0.468 19 0.456 20 0.444 21 0.433 2015 0.090 0.207 2016 0.030 -0.014 2017 0.128 0.113 2018 - 0.035 0.027 22 0.423 23 0.413 24 0.404 25 0.396 Print Done 26 0.388 27 0.381 Tne correlauon coeicient is- (Round to three decimal places as needed.) Print Done
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 2 images

Blurred answer
Recommended textbooks for you
Glencoe Algebra 1, Student Edition, 9780079039897…
Glencoe Algebra 1, Student Edition, 9780079039897…
Algebra
ISBN:
9780079039897
Author:
Carter
Publisher:
McGraw Hill