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= - 6149
13434.29
= -0.457
Since r= - 0.457
From the above table the coefficient of correlation of correlation r=+36.82. It
indicates that the degree of positive correlation between savings and total deposit is
high. It can be consider as high correlation. It shows that if the amount of saving
deposit increases the amount of the total deposit also increases according.
PE = 0.6745 × 1-r2
√n
= 0.6745 ×1-1322.04
√4
= 891, 04
2
= 445.52
PE ×6 = 0.636
Since, r>6PE
The test shows that the correlation coefficient is greater than 6 times of its. It shows
that there is highly significant relation exist savings deposit and total deposit.
Yc = a + bx
∑x
Where, a =
N
∑ xy
b=
∑ x2