- 18 Marks
QT – May 2018 – L1 – Q7b – Forecasting
Calculate Pearson and Spearman correlation coefficients for production cost and output data.
Question
The secretariat of an association of industries gathered the following data from a random sample of member firms that produce similar products:
Required:
i) Compute the Pearson’s product moment correlation coefficient for the data. (6 marks)
ii) Hence, compute the coefficient of determination. (2 marks)
iii) Comment on your answer in (ii). (2 marks)
iv) Compute Spearman’s rank correlation coefficient for the data and comment on your answer. (8 marks)
Find Related Questions by Tags, levels, etc.