The following is a set of data from a sample of n =11items Complete parts (a) through left parenthesis c right parenthesis . X 6 36 27 54 21 39 24 9 39 39 33 Y 2 12 9 18 7 13 8 3 13 13 11 a. Compute the covariance. (Round to three decimal places as needed.) b. Compute the coefficient of correlation. (Do not round until the final answer. Then round to three decimal places as needed.) c. How strong is the relationship between X and Y? Explain. A. X and Y have no correlation. B. X and Y have a perfect positive correlation because all points fall on a straight line with a positive slope. C. X and Y have a perfect negative correlation because all points fall on a straight line with a negative slope. D. X and Y have a strong positive correlation because as X increases, Y tends to increase also.
The following is a set of data from a sample of n =11items Complete parts (a) through left parenthesis c right parenthesis . X 6 36 27 54 21 39 24 9 39 39 33 Y 2 12 9 18 7 13 8 3 13 13 11 a. Compute the covariance. (Round to three decimal places as needed.) b. Compute the coefficient of correlation. (Do not round until the final answer. Then round to three decimal places as needed.) c. How strong is the relationship between X and Y? Explain. A. X and Y have no correlation. B. X and Y have a perfect positive correlation because all points fall on a straight line with a positive slope. C. X and Y have a perfect negative correlation because all points fall on a straight line with a negative slope. D. X and Y have a strong positive correlation because as X increases, Y tends to increase also.
Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter25: Portfolio Theory And Asset Pricing Models
Section: Chapter Questions
Problem 7SP
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Question
The following is a set of data from a sample of
n =11items
Complete parts (a) through left parenthesis c right parenthesis .
|
X
|
6
|
36
27
54
21
39
24
9
39
39
33
|
Y
|
2
|
12
9
18
7
13
8
3
13
13
11
a. Compute the covariance.
b. Compute the coefficient of correlation.
(Do not round until the final answer. Then round to three decimal places as needed.)
c. How strong is the relationship between X and Y? Explain.
A.
X and Y have no correlation.
B.
X and Y have a perfect positive correlation because all points fall on a straight line with a positive slope.
C.
X and Y have a perfect negative correlation because all points fall on a straight line with a negative slope.
D.
X and Y have a strong positive correlation because as X increases, Y tends to increase also.
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