The following data includes the year, make, model, mileage (in thousands of mile

Question

The following data includes the year, make, model, mileage (in thousands of miles) and asking price (in US dollars) for each of 13 used Honda Odyssey minivans. The data was collected from the Web site of the Seattle P-I on April 25, 2005.

Compute the correlation between age (in years) and price for these minivans. (Assume the correlation conditions have been satisfied and round your answer to the nearest 0.001.)

year make model mileage price 2004 Honda Odyssey EXL   20 26900 2004 Honda Odyssey EX 21 23000 2002 Honda Odyssey 33 17500 2002 Honda Odyssey 41 18999 2001 Honda Odyssey EX 43 17200 2001 Honda Odyssey EX 67 18995 2000 Honda Odyssey LX 46 13900 2000 Honda Odyssey EX 72 15250 2000 Honda Odyssey EX 82 13200 2000 Honda Odyssey 99 11000 1999 Honda Odyssey 71 13900 1998 Honda Odyssey 85 8350 1995 Honda Odyssey EX 100 5800

Explanation / Answer

The correlation coefficient (a value between -1 and +1) tells you how strongly two variables are related to each other. We can use the CORREL function or the Analysis Toolpak add-in in Excel to find the correlation coefficient between two variables.

Using excel function you will get correlation 0.9399 between age and price

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