The scatter chart in the following figure was created using sample data for profits and market capitalizations from a sample of firms in the Fortune 500. Click on the datafile logo to reference the data. DATA file Market Cap millions) 200000 160000 120000 80000 40000 0 0 4000 8000 Profits ($ millions) 12000 16000 (a) Discuss what does this scatter chart indicates about the relationship between profits and market capitalization? The scatter chart indicates that there may be a - Select your answer - linear relationship between profits and market capitalization.

MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
Question

formula needed with excel please

Company
Alliant Techsystems
Amazon.com
AmerisourceBergen
Avis Budget Group
Boeing
Cardinal Health
Cisco Systems
Coca-Cola
ConocoPhillips
Costco Wholesale
CVS Caremark
Delta Air Lines
Fidelity National Financial
FMC Technologies
Foot Locker
General Motors
Harley-Davidson
HCA Holdings
Kraft Foods
Kroger
Lockheed Martin
Medco Health Solutions
Owens Corning
Pitney Bowes
Procter & Gamble
Ralph Lauren
Rockwell Automation
Rockwell Collins
United Stationers
United Technologies
UnitedHealth Group
Profits ($
millions)
313.20
631.00
706.60
-29.00
4018.00
959.00
6490.00
8572.00
12436.00
1462.00
3461.00
854.00
369.50
399.80
278.00
9190.00
599.10
2465.00
3527.00
602.00
2655.00
1455.70
276.00
617.50
11797.00
567.60
697.80
634.00
109.00
4979.00
5142.00
Market Capitalization
($ millions)
1891.90
81458.60
10087.60
1175.80
55188.80
14115.20
97376.20
157130.50
95251.90
36461.20
53575.70
7082.10
3461.40
12520.30
3547.60
32382.40
8925.30
9550.20
65917.40
13819.50
26651.10
21865.90
3417.80
3681.20
182109.90
12522.80
10514.80
8560.50
1381.60
66606.50
53469.40
Transcribed Image Text:Company Alliant Techsystems Amazon.com AmerisourceBergen Avis Budget Group Boeing Cardinal Health Cisco Systems Coca-Cola ConocoPhillips Costco Wholesale CVS Caremark Delta Air Lines Fidelity National Financial FMC Technologies Foot Locker General Motors Harley-Davidson HCA Holdings Kraft Foods Kroger Lockheed Martin Medco Health Solutions Owens Corning Pitney Bowes Procter & Gamble Ralph Lauren Rockwell Automation Rockwell Collins United Stationers United Technologies UnitedHealth Group Profits ($ millions) 313.20 631.00 706.60 -29.00 4018.00 959.00 6490.00 8572.00 12436.00 1462.00 3461.00 854.00 369.50 399.80 278.00 9190.00 599.10 2465.00 3527.00 602.00 2655.00 1455.70 276.00 617.50 11797.00 567.60 697.80 634.00 109.00 4979.00 5142.00 Market Capitalization ($ millions) 1891.90 81458.60 10087.60 1175.80 55188.80 14115.20 97376.20 157130.50 95251.90 36461.20 53575.70 7082.10 3461.40 12520.30 3547.60 32382.40 8925.30 9550.20 65917.40 13819.50 26651.10 21865.90 3417.80 3681.20 182109.90 12522.80 10514.80 8560.50 1381.60 66606.50 53469.40
The scatter chart in the following figure was created using sample data for profits and market capitalizations from a sample of firms in the Fortune 500.
Click on the datafile logo to reference the data.
DATA file
Market Cap $ millione)
200000
160000
120000
80000
40000
0
4000
8000
Profits ($millions)
12000
16000
(a) Discuss what does this scatter chart indicates about the relationship between profits and market capitalization?
The scatter chart indicates that there may be a - Select your answer - linear relationship between profits and market capitalization.
(b) The data used to produce this are contained in the file Fortune 500. Calculate the covariance between profits and market capitalization.
If required, round your answer to an integer. If your answer is negative use "minus sign".
Discuss what does the covariance indicates about the relationship between profits and market capitalization?
This indicates that there is a Select your answer - relationship between profits and market capitalization.
(c) Calculate the correlation coefficient between profits and market capitalization.
If required, round your answer to four decimal places. If your answer is negative use "minus sign".
What does the correlation coefficient indicate about the relationship between profits and market capitalization?
This indicates that there is a Select your answer -
between profits and market capitalization.
Transcribed Image Text:The scatter chart in the following figure was created using sample data for profits and market capitalizations from a sample of firms in the Fortune 500. Click on the datafile logo to reference the data. DATA file Market Cap $ millione) 200000 160000 120000 80000 40000 0 4000 8000 Profits ($millions) 12000 16000 (a) Discuss what does this scatter chart indicates about the relationship between profits and market capitalization? The scatter chart indicates that there may be a - Select your answer - linear relationship between profits and market capitalization. (b) The data used to produce this are contained in the file Fortune 500. Calculate the covariance between profits and market capitalization. If required, round your answer to an integer. If your answer is negative use "minus sign". Discuss what does the covariance indicates about the relationship between profits and market capitalization? This indicates that there is a Select your answer - relationship between profits and market capitalization. (c) Calculate the correlation coefficient between profits and market capitalization. If required, round your answer to four decimal places. If your answer is negative use "minus sign". What does the correlation coefficient indicate about the relationship between profits and market capitalization? This indicates that there is a Select your answer - between profits and market capitalization.
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