The following data for five years of the annual returns for two of Vanguard's mutual funds, the Vanguard Energy Fund (x) and the Vanguard Healthcare Fund (y), were given as s_x= 35.77, s_y= 13.34, s_xy= 447.68. Which of the following is the value of the sample correlation coefficient? A) 0.88 B) 0.94 C) 0.78 D) −0.78

Question

Quizplus · Accepted Answer

The sample correlation coefficient can be calculated using the formula: r = sS1U1B1xy / sqrt(sS1U1B1x * sS1U1B1y). Plugging in the given values, we get r = 447.68 / sqrt(35.77 * 13.34) = 0.94 (rounded to two decimal places). Therefore, the answer is B.

The Following Data for Five Years of the Annual Returns