The joint probability distribution of the size of company A’s sales force and company B’s yearly sales revenue is represented in the following table: Probability # of sales people (A) Yearly sales revenues (B) 0.10 20 7.17 0.20 19 5.85 0.25 32 2.61 0.25 40 1.53 0.20 45 1.06 Compute the covariance and correlation of the size of the sales force and yearly sales revenue. What does the correlation coefficient tell you about the relationship between the size of company A’s sales force and company B’s yearly sales revenue? describe what the correlation means.
The joint probability distribution of the size of company A’s sales force and company B’s yearly sales revenue is represented in the following table: Probability # of sales people (A) Yearly sales revenues (B) 0.10 20 7.17 0.20 19 5.85 0.25 32 2.61 0.25 40 1.53 0.20 45 1.06 Compute the covariance and correlation of the size of the sales force and yearly sales revenue. What does the correlation coefficient tell you about the relationship between the size of company A’s sales force and company B’s yearly sales revenue? describe what the correlation means.
The joint probability distribution of the size of company A’s sales force and company B’s yearly sales revenue is represented in the following table: Probability # of sales people (A) Yearly sales revenues (B) 0.10 20 7.17 0.20 19 5.85 0.25 32 2.61 0.25 40 1.53 0.20 45 1.06 Compute the covariance and correlation of the size of the sales force and yearly sales revenue. What does the correlation coefficient tell you about the relationship between the size of company A’s sales force and company B’s yearly sales revenue? describe what the correlation means.
The joint probability distribution of the size of company A’s sales force and company B’s yearly sales revenue is represented in the following table:
Probability
# of sales people (A)
Yearly sales revenues (B)
0.10
20
7.17
0.20
19
5.85
0.25
32
2.61
0.25
40
1.53
0.20
45
1.06
Compute the covariance and correlation of the size of the sales force and yearly sales revenue.
What does the correlation coefficient tell you about the relationship between the size of company A’s sales force and company B’s yearly sales revenue? describe what the correlation means.
Definition Definition Statistical measure used to assess the strength and direction of relationships between two variables. Correlation coefficients range between -1 and 1. A coefficient value of 0 indicates that there is no relationship between the variables, whereas a -1 or 1 indicates that there is a perfect negative or positive correlation.
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