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MATH 101 Correlation
MATH 101 Correlation
MATH 101 Correlation
1. Definition:
A scatter plot is a type of graphical representation used to display the relationship between two variables.
It consists of a series of data points, each representing the value of one variable plotted on the horizontal axis (x-
axis) and the value of the other variable plotted on the vertical axis (y-axis). These points are scattered across the
plot, and the pattern they form can reveal the nature of the relationship between the variables. Scatter plots are
particularly useful for identifying correlations or trends in the data, such as positive or negative relationships,
clusters, or outliers.
2. Problem:
Using the information in the table below about the Electricity Bill of 10 Households, construct a Scatter
plot.
Households 1 2 3 4 5 6 7 8 9 10
Number of
Household 4 5 7 4 3 6 5 8 6 4
Consumers
Electricity
Bills 698.27 1579.36 3105.79 1219.51 838.17 2562.09 3021.03 4373.48 1772.05 979.15
(pesos)
3. Scatter Plot:
Plot
5000
4500
4000
3500
Electricity Bills
3000
2500
2000
1500
1000
500
0
2 3 4 5 6 7 8 9
Number of Household Consumers
4. Analysis:
The data presented in my scatter plot demonstrates a high positive correlation (r = 0.89) between the number of
household consumers and their corresponding electricity bills, indicating that as the number of household members
increases, so does the electricity bill. The linear regression equation, ŷ = 697.37x - 1,611.43, further supports this
relationship, suggesting that for each additional household consumer, the electricity bill is estimated to increase by
697.37 pesos. If the number of consumers is zero, the estimated electricity bill would be -1,611.43 pesos, which is not
practically feasible as it cannot be negative in pesos. Thus, it can be interpreted as 0 pesos, indicating that with no
consumers, there is no electricity bill.
SOLUTIONS
Correlation
Given:
n=10
∑xy = 119,837.39
∑x= 52
∑y= 20,148.9
∑x² = 292
∑y²= 53,734,774.78
Formula:
n ∑ xy−( ∑ x ) ( Σy )
r=
√ [ n ( ∑ x )− ( Σx ) ][ n ( Σ y )− ( Σy ) ]
2 2 2 2
150,631.1
r=
√ 28 , 375 , 828 ,545.6
150,631.1
r=
168,451.26
Regression
∑x= 52
∑y= 20,148.9
∑x²= 292
∑y² = 53,734,774.78
∑xy= 119,837.39
n ∑ xy− ( ∑ x )( Σy )
b 1=
n ( ∑ x 2 )−(∑ x) ²
150,631.1
b 1=
216
Σx
x=
n
52
x= = 5.2
10
Σy
y=
n
20148.9
y= = 2,014.89
10
5. Substitute the slope and intercept in the general linear regression equation.
^y =b1 x +b 0
^y =697.37 x −1,611.43