Question

An electronics retailer would like to investigate the relationship between the selling price of a certain digital camera mode
Demand Price 20 360 12 380 390 OE 400
0 0
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Answer #1

We can find out correlation coefficient (r) using the formula or technology.

Let's use excel for this.

First of all, enter the data in excel as follows:

x y
20 340
18 350
15 360
11 370
12 380
9 390
8 400

Use the following excel command for finding the r.

=CORREL(Select x values, select y values)

We will get, r = -0.970

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