Business Statistics Assessment 1 : Statistics Questions

Question 1: (10 marks)

Given the following sample data:

x                        y
420               2.80
610                3.60
625              3.75
500             3.00
400              2.50
450              2.70
550             3.50
650             3.90
480             2.95
565             3.30

a) Calculate the covariance and the correlation coefficient. Comment on the relationship between x and y.
b) Determine the least squares line. Draw the scatter diagram and plot the least squares line.