What do you think is the correlation coefficient between the “kwh of electricity used” and the

amount of your “electric bill”? Explain.

Month electricity used (kwh) amount of electric bill

1 43.00 460.00

2 45.00 540.00

3 50.00 500.00

4 38.00 360.00

5 40.00 400.00

2 2
x Y XY x y

43.00 460.00 19780 1849 211600

45.00 540.00 24300 2025 291600

50.00 500.00 25000 2500 250000

38.00 360.00 13680 1444 129600

40.00 400.00 16000 1600 160000

∑ x =216 ∑ y=2260 ∑ xy =98760 ∑ x 2=9418 ∑ y2 =1042800

n ∑ x y−∑ x ∑ y
r=
√ [ n∑ x −(∑ x ) ] [n ∑ y −(∑ y ) ]
2 2 2 2

5(98760)−(216)(2260)
r=
√ [ 5(9418)−( 216 ) ] [5(1042800)−( 2 260 ) ]
2 2

493800−488160
r=
√ [ 47090−46656 ] [5214000−5107600]
5640
r=
√ [ 434 ] [106400]
5640
r= =0.8299
√ 46177600

Interpretation:
Since a coefficient correlation is 0.81 this