EBK STATISTICS FOR MANAGEMENT AND ECONO
EBK STATISTICS FOR MANAGEMENT AND ECONO
10th Edition
ISBN: 8220102958609
Author: KELLER
Publisher: YUZU
Question
Book Icon
Chapter 4.4, Problem 67E
To determine

Determine covariance.

Expert Solution & Answer
Check Mark

Explanation of Solution

Covariance is a measure that is used to measure the relationship between the movements of two variables. Thus, covariance measures how changes in one variable are associated with the changes in a second variable. Therefore, covariance measures the degree to which two variables are linearly associated. In this case, covariance can be measured after calculating the square of x and y and the product of xy as follows:

xiyixi2yi2xiyi
5999.6358,80192.165750.4
6898.8474,72177.446063.2
5847.4341,05654.764321.6
63110.0398,161100.006310.0
5947.8352,83660.844632.2
6439.2413,44984.645915.6
6569.6430,33692.166297.6
5948.4352,83670.564989.6
71011.2504,100125.447952.0
6117.6373,32157.764643.6
5938.8351,64977.445218.4
6838.0466,48964.005464.0
i=1nxi=7587i=1nyi=106.4i=1nxi2=4817755i=1nyi2=957.2i=1nxiyi=67559.2

Covariance can be calculated as follows:

sxy=1n1[i=1nxiyii=1nxii=1nyin]=1121[67,559.2(7,587)(106.4)12]=26.16

The values of two standard deviations can be calculated as follows:

sx2=1n1[i=1nxi2(i=1nxi)2n]=1121[4,817,755(7,587)212]=1,897.7

SX=S2X=1897.7=43.56

Similarly,

sy2=1n1[i=1nyi2(i=1nyi)2n]=1121[957.2(106.4)212]=1.25

SY=S2Y=1.25=1.12

The value of ‘r’ can be calculated as follows:

Coefficient of correlation=CovariancexyStandard deviationxStandard deviationyr=SxySxSy=26.16(43.56)(1.12)=0.5362

The value of coefficient of correlation can be calculated as follows:

Coefficient of determination=(Coefficient of correlation)2=(0.5362)2=0.2875

The calculation indicates that the covariance of the data set is 26.16 and the coefficient of correlation is 0.5362. The coefficient of determination is 0.2875, which means that 28.75 percent of the variation in MBA GPA is explained by the variation in the GMAT scores.

Economics Concept Introduction

Covariance: Covariance is a measure that is used to measure the relationship between the movements of two variables.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
• 3 different people working at any companies under the BPO industry in the Philippines. • What are the 3 different Vision, Mission, Duties and Responsibilities and Career Path of these people in their companies under the BPO industry?
Module 6 ⚫(1902) Buckner C X | (1902) How to d x (1902) Buckner F X (1902) Productic X WP Videoplayer Canvas Login | Ir x | + Σ R mybrcc.instructure.com/courses/417310/discussion_topics/3420114?module_item_id=20155705 Spring 2025 Home Announcements Modules Syllabus Grades 8 People BRCC-_Library DLASC Module 6 Discussion - Business Costs Relaunch to update For this discussion, think about where you work or a business you have a significant amount of knowledge about. What is a common product that the business sells? What are the main costs the business has to incur in order to be able to sell that product? Which of these costs are fixed and which are variable? How much additional costs would be incurred if it were to sell one additional unit of that product (marginal cost)? Write a discussion thread about this business, the product it commonly sells, and your answers to the above questions. Also, respond to at least two threads created by your classmates. In these responses, share what…
Refer to the video to answer the following:  • what are all the key policies or all the strategies the Philippine government should prioritize to accelerate sustainable economic growth?  • these should consider the Philippines current economic challenges, including inflation, unemployment, and the need for digital transformation.   "The Philippines' Strong Economic Growth"  (YouTube link: https://youtu.be/1YtEoGp2ZeM?siJQfIv5kbu0txVsLL.)

Chapter 4 Solutions

EBK STATISTICS FOR MANAGEMENT AND ECONO

Ch. 4.1 - Prob. 11ECh. 4.1 - Prob. 12ECh. 4.1 - Prob. 13ECh. 4.1 - Prob. 14ECh. 4.1 - Prob. 15ECh. 4.1 - Prob. 16ECh. 4.1 - Prob. 17ECh. 4.1 - Prob. 18ECh. 4.1 - Prob. 19ECh. 4.1 - Prob. 20ECh. 4.1 - Prob. 21ECh. 4.1 - Prob. 22ECh. 4.1 - Prob. 23ECh. 4.1 - Prob. 24ECh. 4.1 - Prob. 25ECh. 4.1 - Prob. 26ECh. 4.2 - Prob. 27ECh. 4.2 - Prob. 28ECh. 4.2 - Prob. 29ECh. 4.2 - Prob. 30ECh. 4.2 - Prob. 31ECh. 4.2 - Prob. 32ECh. 4.2 - Prob. 33ECh. 4.2 - Prob. 34ECh. 4.2 - Prob. 35ECh. 4.2 - Prob. 36ECh. 4.2 - Prob. 37ECh. 4.2 - Prob. 38ECh. 4.2 - Prob. 39ECh. 4.3 - Prob. 40ECh. 4.3 - Prob. 41ECh. 4.3 - Prob. 42ECh. 4.3 - Prob. 43ECh. 4.3 - Prob. 44ECh. 4.3 - Prob. 45ECh. 4.3 - Prob. 47ECh. 4.3 - Prob. 49ECh. 4.3 - Prob. 50ECh. 4.3 - Prob. 51ECh. 4.3 - Prob. 52ECh. 4.3 - Prob. 53ECh. 4.3 - Prob. 54ECh. 4.3 - Prob. 55ECh. 4.3 - Prob. 56ECh. 4.3 - Prob. 57ECh. 4.3 - Prob. 58ECh. 4.3 - Prob. 59ECh. 4.3 - Prob. 60ECh. 4.3 - Prob. 61ECh. 4.3 - Prob. 62ECh. 4.4 - Prob. 63ECh. 4.4 - Prob. 64ECh. 4.4 - Prob. 65ECh. 4.4 - Prob. 66ECh. 4.4 - Prob. 67ECh. 4.4 - Prob. 68ECh. 4.4 - Prob. 69ECh. 4.4 - Prob. 70ECh. 4.4 - Prob. 71ECh. 4.4 - Prob. 72ECh. 4.4 - Prob. 73ECh. 4.4 - Prob. 74ECh. 4.4 - Prob. 75ECh. 4.4 - Prob. 77ECh. 4.4 - Prob. 76ECh. 4.4 - Prob. 78ECh. 4.4 - Prob. 79ECh. 4.4 - Prob. 80ECh. 4.4 - Prob. 81ECh. 4.4 - Prob. 82ECh. 4.4 - Prob. 83ECh. 4.4 - Prob. 84ECh. 4.4 - Prob. 85ECh. 4.4 - Prob. 86ECh. 4.4 - Prob. 87ECh. 4.4 - Prob. 88ECh. 4.4 - Prob. 89ECh. 4.4 - Prob. 90ECh. 4.4 - Prob. 91ECh. 4.4 - Prob. 92ECh. 4.4 - Prob. 93ECh. 4.6 - Prob. 94ECh. 4.6 - Prob. 95ECh. 4.6 - Prob. 96ECh. 4.6 - Prob. 97ECh. 4.6 - Prob. 98ECh. 4.6 - Prob. 99ECh. 4.6 - Prob. 100ECh. 4.6 - Prob. 101ECh. 4.6 - Prob. 102ECh. 4.6 - Prob. 103ECh. 4.6 - Prob. 104ECh. 4.6 - Prob. 105ECh. 4.6 - Prob. 106ECh. 4.6 - Prob. 107ECh. 4.6 - Prob. 108ECh. 4.6 - Prob. 109ECh. 4.6 - Prob. 110ECh. 4.6 - Prob. 111ECh. 4.6 - Prob. 112ECh. 4.6 - Prob. 113ECh. 4.7 - Prob. 114ECh. 4.7 - Prob. 115ECh. 4.7 - Prob. 116ECh. 4.7 - Prob. 117ECh. 4.7 - Prob. 118ECh. 4.7 - Prob. 119ECh. 4.7 - Prob. 120ECh. 4 - Prob. 121CECh. 4 - Prob. 122CECh. 4 - Prob. 123CECh. 4 - Prob. 124CECh. 4 - Prob. 125CECh. 4 - Prob. 126CECh. 4 - Prob. 127CECh. 4 - Prob. 128CECh. 4 - Prob. 129CECh. 4 - Prob. 130CECh. 4 - Prob. 131CE
Knowledge Booster
Background pattern image
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
Text book image
Microeconomic Theory
Economics
ISBN:9781337517942
Author:NICHOLSON
Publisher:Cengage
Text book image
Managerial Economics: Applications, Strategies an...
Economics
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:Cengage Learning
Text book image
Principles of Economics 2e
Economics
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:OpenStax
Text book image
MACROECONOMICS FOR TODAY
Economics
ISBN:9781337613057
Author:Tucker
Publisher:CENGAGE L
Text book image
Micro Economics For Today
Economics
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Cengage,
Text book image
Economics For Today
Economics
ISBN:9781337613040
Author:Tucker
Publisher:Cengage Learning