There are two series of index numbers, P for price index and S for stock of a commodity. The mean and standard deviation of P are 100 and 8 and of S are 103 and 4 respectively. The correlation coefficient between the two scries is 0.4. With these data, work out a linear equation to read off values of P for various values of S. Can the same equation be used to read off values of S for various values of P?

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.1: Measures Of Center
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There are two series of index numbers, P for price index and S
for stock of a commodity. The mean and standard deviation of P are 100 and 8
and of S are 103 and 4 respectively. The correlation coefficient between the two
series is 0.4. With these data, work out a linear equation to read off values of P
for various values of S. Can the same equation be used to read off values of S for
various values of P?
Transcribed Image Text:There are two series of index numbers, P for price index and S for stock of a commodity. The mean and standard deviation of P are 100 and 8 and of S are 103 and 4 respectively. The correlation coefficient between the two series is 0.4. With these data, work out a linear equation to read off values of P for various values of S. Can the same equation be used to read off values of S for various values of P?
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