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Question 5: Find Correlation: X Y XY X Y
Question 5: Find Correlation: X Y XY X Y
a.
Years Advertisement Sales XY X2 y2
expenditure (X) (Y)
2013 3 15 45 9 225
2014 9 22 198 81 484
2015 6 18 108 36 324
2016 1 10 10 1 100
2017 8 19 152 64 361
2018 8 21 168 64 441
2019 5 17 85 25 289
N ∑ xy−( ∑ x)( ∑ y)
r=
√ ¿ ¿¿
( 7 )( 766 ) −(40)( 122)
r=
√ ¿¿ ¿
5362−4880
r=
√ [ 1960−1600 ][ 15568−14884 ]
482
r=
√ [ 360 ][ 684 ]
482
r=
√ 246240
482
r=
496.2
r =0.97
Correlation is greater than 0.5. So, company should continue spending on advertisements