Consider the Following Data

question 37

Essay

Consider the following data:
a.Calculate the covariance and the coefficient of correlation for the sample.
b.What do these statistics tell you about the relationship between x and y?

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Definitions:

T-bills

Short-term government securities with maturity periods typically less than a year, used as a financial instrument to manage short-term liquidity.

Simple Interest

Interest calculated only on the principal amount, not on accumulated interest.

Discount Rate

The discount rate applied in the evaluation of discounted cash flow to ascertain the current worth of anticipated future cash flows.

Promissory Note

A fiscal agreement in which one side promises in writing to pay a fixed amount of cash to the other side, either immediately when demanded or on a future agreed date.