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

question 77

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:

Periodic Inventory Method

An accounting method where inventory is updated and the cost of goods sold (COGS) is calculated at the end of an accounting period, instead of recording inventory transactions as they happen.

Delivery Expense

Costs incurred in transporting goods from a seller to the purchaser, which may include shipping fees, fuel, and labor.

Normal Balance

The side (debit or credit) on which increases to the account are recorded, depending on the account type.

Financial Statement

Documents that provide an overview of a company's financial condition, including balance sheets, income statements, and statements of cash flows.