A Calculate the Covariance and the Coefficient of Correlation for the Following

question 59

Essay

a. Calculate the covariance and the coefficient of correlation for the following sample. $$\begin{array} { | l | r | r | r | r | r | } \hline x & 9 & 6 & 7 & 5 & 8 \\\hline y & 19 & 14 & 16 & 12 & 15 \\\hline\end{array}$$ b. What do these statistics tell you about the relationship between X and Y?

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Definitions:

NPV

Net Present Value; a calculation used to determine the present value of an investment by discounting its future cash flows.

Initial Investment

The amount of money used to start a new project, purchase an asset, or invest in the market at the initiation phase.

Payback Period

The amount of time it takes to recover the cost of an investment, calculating how long it will take to break even from the initial expenditures.

Net Cash Inflows

The total amount of money received minus money spent over a certain period, often used in evaluating project profitability.