12. Given the data series below for variables Y (Monthly Inventory Balance) and
ID: 1189370 • Letter: 1
Question
12.
Given the data series below for variables Y (Monthly Inventory Balance) and X (Monthly Sales) are they significantly correlated at the 95% confidence level and how can you tell? (This data also appears in the docsharing download for Exam 1 excel worksheet under the problem 12 tab.)
Ending Inv. Bal. Y
Monthly Sales X
1544
5053
1913
5052
2028
7507
1178
2887
1554
3880
1910
4454
1208
3855
2467
8824
2101
5716
(Points : 3)
A. Yes. The correlation coefficient is .873 that is greater than .05.
B. Yes. The correlation p-value is .002 which is less than .05.
C. No. The correlation coefficient is above the p-value.
D. No. The correlation p-value is greater than the 95% confidence level.
Ending Inv. Bal. Y
Monthly Sales X
1544
5053
1913
5052
2028
7507
1178
2887
1554
3880
1910
4454
1208
3855
2467
8824
2101
5716
Explanation / Answer
Correlation Coefficient = 50500242/ (15931.9349735053*3632.28275331093) =0.872660433606723 =0.873
So the correct option is A. Yes. The correlation coefficient is .873 that is greater than .05.
Ending Inv. Bal. Y Monthly Sales X XY X^2 Y^2 1544 5053 7801832 25532809 2383936 1913 5052 9664476 25522704 3659569 2028 7507 15224196 56355049 4112784 1178 2887 3400886 8334769 1387684 Formulae (nExy-ExEy)/((nEx^(2)-(Ex)^(2))(nEy^(2)-(Ey)^(2)))^(1/2) 1554 3880 6029520 15054400 2414916 n= 9 1910 4454 8507140 19838116 3648100 Numerator 50500242 1208 3855 4656840 14861025 1459264 Denominators 15931.93497 2467 8824 21768808 77862976 6086089 3632.282753 2101 5716 12009316 32672656 4414201 Correlation 0.873 15903 47228 89063014 276034504 29566543 Ey Ex Exy Ex^(2) Ey^(2)Related Questions
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