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Question
If the values of two variables move in the opposite direction then the correlation is said to be
Options
Negative
Positive
Perfect positive
No correlation
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Solution
Negative
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Find the coefficient of correlation for the following:
| Cost (₹) | 14 | 19 | 24 | 21 | 26 | 22 | 15 | 20 | 19 |
| Sales (₹) | 31 | 36 | 48 | 37 | 50 | 45 | 33 | 41 | 39 |
Calculate the coefficient of correlation between X and Y series from the following data.
| Description | X | Y |
| Number of pairs of observation | 15 | 15 |
| Arithmetic mean | 25 | 18 |
| Standard deviation | 3.01 | 3.03 |
| Sum of squares of deviation from the arithmetic mean | 136 | 138 |
Summation of product deviations of X and Y series from their respective arithmetic means is 122.
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∑X = 125, ∑Y = 100, ∑X2 = 650, ∑Y2 = 436, ∑XY = 520, N = 25
