Eight Observations Taken for Two Variables Are as Follows A Develop a Scatter Diagram with X on the Horizontal

question 29

Essay

Eight observations taken for two variables are as follows: $$\begin{array} { c | c } x _ { i } & y _ { i } \\\hline 11 & 35 \\13 & 32 \\17 & 26 \\18 & 25 \\22 & 20 \\24 & 17 \\26 & 11 \\28 & 10\end{array}$$
a. Develop a scatter diagram with x on the horizontal axis.
b. What does the scatter diagram developed in part (a) indicate about the relationship between the two variables?
c. Compute and interpret the sample covariance.
d. Compute and interpret the sample correlation coefficient.

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Definitions:

Normal Good

A product or service whose demand increases as consumers' income increases, typically reflecting higher purchasing power.

Profit-Maximizing

The strategy by which an organization sets the price and amount of output to achieve the maximum profitability.

Market Price

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

Perfectly Competitive Market

A hypothetical market where all participants are price takers, and goods are perfect substitutes, leading to an efficient distribution of resources.