Math  /  Data & Statistics

Question4. Find the persons coefficient of correlation between price and demand from the following data. \begin{tabular}{|l|l|l|l|l|l|l|l|} \hline Price & 11 & 13 & 15 & 17 & 18 & 19 & 20 \\ \hline Demand & 30 & 29 & 24 & 24 & 21 & 18 & 15 \\ \hline \end{tabular}

Studdy Solution
Use the formula for Pearson's correlation coefficient:
r=Cov(X,Y)SD of Price×SD of Demandr = \frac{\text{Cov}(X, Y)}{\text{SD of Price} \times \text{SD of Demand}}
r=14.863.14×5.0714.8615.910.93r = \frac{-14.86}{3.14 \times 5.07} \approx \frac{-14.86}{15.91} \approx -0.93
The Pearson correlation coefficient is approximately:
0.93 \boxed{-0.93}

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