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The Following Data Represent the Daily Demand Y in Thousands

question 103

Essay

The following data represent the daily demand y in thousands of units) and the unit price x in dollars) for a product.
 Daily Demand y)  Unit Price x ) 4713933554433462081516306\begin{array}{cc}\text { Daily Demand y) }&\text { Unit Price } x \text { ) }\\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.


Definitions:

After-Tax Cost of Debt

The net cost to a company for borrowing funds after accounting for the tax benefit derived from interest expense deductions on its corporate income tax.

Coupon Rate

The interest rate that a bond issuer will pay to the bondholder on the face value of the bond.

Market Price

The live market price at which an asset or service can be bought or sold.

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