The following data represent the daily demand (y in thousands of units) and the unit price (x in dollars) for a product. $$\begin{array} { l c }
\text { Daily Demand (y) } & \text { Unit Price (x) } \
47 & 1 \
39 & 3 \
35 & 5 \
44 & 3 \
34 & 6 \
20 & 8 \
15 & 16 \
30 & 6
\end{array}$$
a.
Compute and interpret the sample covariance for the above data.
b.
Compute and interpret the sample correlation coefficient.

Question

The following data represent the daily demand (y in thousands of units) and the unit price (x in dollars) for a product. $$\begin{array} { l c } 
\text { Daily Demand (y) } & \text { Unit Price (x) } \
47 & 1 \
39 & 3 \
35 & 5 \
44 & 3 \
34 & 6 \
20 & 8 \
15 & 16 \
30 & 6
\end{array}$$ ​ 
a.
Compute and interpret the sample covariance for the above data.
b.
Compute and interpret the sample correlation coefficient.

Quizplus · Accepted Answer

The Answer of The following data represent the daily demand (y in thousands of units) and the unit price (x in dollars) for a product. $$\begin{array} { l c } 
\text { Daily Demand (y) } & \text { Unit Price (x) } \
47 & 1 \
39 & 3 \
35 & 5 \
44 & 3 \
34 & 6 \
20 & 8 \
15 & 16 \
30 & 6
\end{array}$$ ​ 
a.
Compute and interpret the sample covariance for the above data.
b.
Compute and interpret the sample correlation coefficient.

The Following Data Represent the Daily Demand (Y in Thousands