Elementary Statistics: A Step-by-Step Approach with Formula Card 9th Edition

Published by McGraw-Hill Education
ISBN 10: 0078136334
ISBN 13: 978-0-07813-633-7

Chapter 10 - Correlation and Regression - 10-1 Scatter Plots and Correlation - Exercises 10-1 - Page 564: 15

Answer

A strong negative linear relationshipship

Work Step by Step

Calculate the means $\bar{x}=\frac{1+5+3+10+7+6}{6}\approx 5.333$ $\bar{y}=\frac{500+100+300+50+75+80}{6}\approx 184.17$ Compute the correlation coefficient $r$: $r=\frac{\sum(x-\bar{x})(y-\bar{y})}{\sqrt{\sum(x-\bar{x})^2\sum(y-\bar{y})^2}}\approx -0.883$ The correlation coefficient is $t\approx -0.883$, indicating a strong negative relationship between years since graduation and contributions.
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