Question

The AudioTex Company is a direct marketer of stereo equipment, personal computers, and other electronic products. AudioTex maintains a web based site, but advertises largely by mailing catalogs to its customers. Orders are taken over the phone and via the internet. There are no physical stores. The data are for a random sample of 1,000 customers of the company at the end of the previous year. The following are the key variables Dependent Variable SALES Annual sales in dollars Independent Variables GENDER Dummy Variable 1- Male - Female OWNHOME Dummy Variable 1- Yes 0 No Dummy Variable 1- Married O Not Married MARRIED Income of the household in dollars INCOME CHILDREN Number of children in the household Number of catalogs sent to the house in the last CATALOGS year The following is the correlation matrix. MARRIED INCOME CHILDREN CATALOGS SALES GENDER OWNHOME SALES 1.0000 GENDER 0.1950 1.0000 OWNHOME 0.0844 0.3480 1.0000 0.4711 0.1161 MARRIED 0.2640 1.0000 0.6845 0.2583 0.4494 0.6652 INCOME 1.0000 0.1055 0.0323 0.2248 0.0098 CHILDREN 0.0479 1.0000 0.4664 CATALOGS 0.0874 0.1371 0.1779 0.1135 0.0931 1.0000 What is the correlation between MARRIED and OWNHOME? I want the exact answer to 4 decimal places. Use the proper rules of rounding.

Answer 1

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The correlation chart specifies the matrix of correlation between OWNHOME & Married

The correlation between these 2 variables is 0.2640. Rounded off to 4 digits, it is still 0.2640.

Answer is 0.2640