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Sample Covariance and Correlation Analysis

The document provides sample data from book sales receipts from a university book store. It contains the price and number of books sold for 4 receipts. It defines the data matrix X and finds the sample mean vector and sample variance covariance matrix using the provided data. The sample correlation matrix is then calculated from these values.

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Muhammad Ali
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80 views1 page

Sample Covariance and Correlation Analysis

The document provides sample data from book sales receipts from a university book store. It contains the price and number of books sold for 4 receipts. It defines the data matrix X and finds the sample mean vector and sample variance covariance matrix using the provided data. The sample correlation matrix is then calculated from these values.

Uploaded by

Muhammad Ali
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

The Correlation Matrix

Cov (x , y )
r= ,
√ [ Var ( x ) ] [Var ( y )]
Cov(x , y)
r=
SD ( x ) x SD( y )
−1 /2 −1/ 2
R
⏟ =D⏟ S⏟ D
⏟
The selection of four receipts from a university book store was obtained. In order to investigate the
nature of book sale each receipt provided among other things. The no of book sold and the price is
given below

Price 42 52 48 58
No of books 4 5 4 3

Identify the data matrix

Find sample mean vector

Find sample variance covariance matrix

Find sample correlation matrix

42 4

[ ]
⏟X = 52 5 the order of this matrix is 4x2
48 4

The sample mean vector is

x= [504 ]
1
S⏟ = [ 42 ∗[ 42 4 ] + 52 ∗[ 52 5 ] + 48 ∗ [ 48 4 ] + 58 ∗[ 58 3 ] −4 50 ∗[ 50 4 ] ]
3 [4] [5] [4 ] [3 ] [ ]
4

1
S⏟ = [ 42 ∗[ 42 4 ] + 52 ∗[ 52 5 ] + 48 ∗ [ 48 4 ] + 58 ∗[ 58 3 ] −4 50 ∗[ 50
3 [4] [5] [4 ] [3 ] [4] 4] ]

1
S⏟ = ¿
3

S⏟ = 45.34 −2
[−2 0.6667 ]

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