Assignment:
Question:
A sample of eight observations of variables x (years of experience) and y (salary in $1,000s) is shown below:
a. Calculate and interpret the covariance between x and y.
b. Give a possible reason that the covariance is negative.
c. Calculate the coefficient of correlation, and comment on the relationship between x and y.
d. Give a possible reason that the correlation is negative.
|
x
|
5
|
3
|
7
|
9
|
2
|
4
|
6
|
8
|
|
y
|
20
|
23
|
15
|
11
|
27
|
21
|
17
|
14
|