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QUESTION 38 Monthly income, in thousands of dollars (SK), at the Acme Law Firm for the six-month period from October to March
According to the regression analysis performed for part 41. what is the numerical value of the strength of the linear associa
QUESTION 45 You have made four different income forecasts for April. Which forecast method is the most accurate? Naive. Simpl
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Answer #1

Question 38.

Answer is

0.9267

Numerical value of strength of linear association between monthly income and month number is given by the correlation coefficient between monthly income and month number. Formula for correlation coefficient is

In our problem,

x is month number i.e. 1,2,3,4,5,6 and y is monthly income i.e. 69.3,68.6,69.4,71.7,72.3,74.8.

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