Question

A marketing analyst wants to know the relationship between shopping hours of a person, x, and the number of pieces of clothing, y, they buy; he makes a sample with 4 people and receives the following results: x = (1, 2, 3, 6) and y = (2, 4, 6, 8); so (x1,y1) = (1,2); (x2,y2) = (2,4) etc.

a) Compute the covariance and the correlation coefficient of x and y! (6 points)

b) What kind of linear relationship between x and y do you observe (positive, negative or no linear relationship?) Is the relationship strong or not? Justify your answer in one or two sentences

Answer 1