Question A

Definitions
According to economics.about.com correlation is a statistical measurement of the relationship
between two variables. Possible correlations range from +1 to 1. A zero correlation indicates
that there is no relationship between the variables. Regression analysis is the mathematical
process of using observations to find the line of best fit through the data in order to make
estimates and prediction about the behavior of the variables.

Question B
Honda Civic
Car Age
2
4
3
1
5
9
10
7
6
8

Selling Price (RM)

95,000
88,500
91,800
107,000
84,800
45,800
38,500
59,800
79,800
55,000

Source: http://www.mudah.com.my

Question (C) and (F)

120,000

100,000

Selling Price

80,000

60,000

Selling Price (RM)

Linear (Selling Price (RM))

40,000

20,000
y = -7490.9x + 115800
0
0

6
Car Age

10

12

Question D

Total

x
2
4
3
1
5
9
10
7
6
8

y
95,000
88,500
91,800
107,000
84,800
45,800
38,500
59,800
79,800
55,000

55

746,000

x^2
16
9
1
25
81
100
49
36
64

y^2
9025000000
7,832,250,000
8,427,240,000
11,449,000,000
7,191,040,000
2,097,640,000
1,482,250,000
3,576,040,000
6,368,040,000
3,025,000,000

xy
190000
354000
275400
107000
424000
412200
385000
418600
478800
440000

385

60473500000

3485000

Reference
Kendra Cherry (2009), what is correlation online journal, [Online], available from: URL
http://psychology.about.com/od/cindex/g/def_correlation.htm, [accessed 2 April 2012]
http://www.mudah.my [accessed 3 April 2012]

Appendix