Given the Following Sample Data A Calculate the Covariance and the Correlation Coefficient

question 17

Essay

Given the following sample data: $$\begin{array} { | c | c | c | c | c | c | c | c | c | c | c | } \hline x & 420 & 610 & 625 & 500 & 400 & 450 & 550 & 650 & 480 & 565 \\\hline y & 2.80 & 3.60 & 3.75 & 3.00 & 2.50 & 2.70 & 3.50 & 3.90 & 2.95 & 3.30 \\\hline\end{array}$$ a. calculate the covariance and the correlation coefficient.
b. comment on the relationship between X and Y.
c. determine the least-squares line.
d. draw the scatter diagram and plot the least-squares line.

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Definitions:

Desire To Invest

The inclination or willingness of individuals or entities to allocate resources to investment opportunities with the expectation of earning a return.

Cash Surpluses

Cash surpluses refer to the amount of cash that exceeds the cash required for day-to-day operations, potentially available for investment or other purposes.

Lockbox System

A service provided by banks to companies for receiving payment from customers, involving payments sent to a special post office box rather than the company's address.

Net Cash Flow

The amount of cash that a company generates or consumes over a specific period, taking into account all cash inflows and outflows from operations, investing, and financing.