Pearson eText for Elementary Statistics: Picturing the World -- Instant Access (Pearson+)

7th Edition

ISBN: 9780137504329

Author: Ron Larson, Betsy Farber

Publisher: PEARSON+

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Correlation

Correlation defines a relationship between two independent variables. It tells the degree to which variables move in relation to each other. When two sets of data are related to each other, there is a correlation between them.

Linear Correlation

A correlation is used to determine the relationships between numerical and categorical variables. In other words, it is an indicator of how things are connected to one another. The correlation analysis is the study of how variables are related.

Regression Analysis

Regression analysis is a statistical method in which it estimates the relationship between a dependent variable and one or more independent variable. In simple terms dependent variable is called as outcome variable and independent variable is called as p…

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Textbook Question

Chapter 9, Problem 2CQ

Chapter 9, Problem 2CQ, For Exercises 18, use the data in the table, which shows the average annual salaries (both in For Exercises 1–8, use the data in the table, which shows the average annual salaries (both in thousands of dollars) for secondary and elementary school teachers, excluding special and vocational education teachers, in the United States for 11 years. (Source: Bureau of Labor Statistics)

Secondary school teachers, x	Elementary school teachers, y
51.2	48.7
52.5	50.0
54.4	52.2
55.2	53.2
56.0	54.3
56.8	55.3
57.8	56.1
58.3	56.3
59.3	56.8
60.4	57.7
61.4	59.0

2. Calculate the correlation coefficient r and interpret the result.

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Chapter 9, Problem 1CQ

Chapter 9, Problem 3CQ

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1 (Expected Shortfall) Suppose the price of an asset Pt follows a normal random walk, i.e., Pt = Po+r₁ + ... + rt with r₁, r2,... being IID N(μ, o²). Po+r1+. ⚫ Suppose the VaR of rt is VaRq(rt) at level q, find the VaR of the price in T days, i.e., VaRq(Pt – Pt–T). - • If ESq(rt) = A, find ES₁(Pt – Pt–T).

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Chapter 9 Solutions

Pearson eText for Elementary Statistics: Picturing the World -- Instant Access (Pearson+)

Ch. 9.1 - A director of alumni affairs at a small college...Ch. 9.1 - A researcher conducts a study to determine whether...Ch. 9.1 - Consider the data on page 469 on the salaries and...Ch. 9.1 - Calculate the correlation coefficient for the...Ch. 9.1 - Use technology to calculate the correlation...Ch. 9.1 - In Try It Yourself 4, you calculated the...Ch. 9.1 - In Try It Yourself 5, you calculated the...Ch. 9.1 - Two variables have a positive linear correlation....Ch. 9.1 - Describe the range of values for the correlation...Ch. 9.1 - What does the sample correlation coefficient r...

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Solution Summary: The author explains how the correlation coefficient between the average annual salaries of secondary school teachers and elementary schools is 0.992.

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