Question

49. A correlation coefficient can range in value between 50. An investor is curious about what saving $1200 per year ($100 per month) would be worth in 30 years both in today's dollars and future dollars. She built the spreadsheet below (only the first four years are shown) Input Savings per month Annual Inflation Annual Total Return 10 3% 12 13 14 Output: Ending Values In Future In Todays Dollars Dollars $169,351 $69,770 15 16 17 18 19 20 21 After 30 Years Calculations EOY EOY in Savings Balance in Year Future Dollars Dollars 23 24 25 26 $1,200 $1,200$1,200 $1,236 $1,273 $1,311 What would be the formula for cell D24?

Answer 1

A correlation coefficient can range in value between +1 and -1. Explanation: Correlation coefficient is denoted by 'r' and is called as Pearson's correlation coefficient. It describes the relationship ( correlation) between two data. --> Correlation coefficient of greater than indicates that there exists positive relationship between the data; >Correlation coefficient of less than 'O' indicates that there exists negative relationship between the data; -> Correlation coefficient of י0' indicates that there exists no relationship between the data