3.

Correlation and Regression Analysis

1. Following data represents the Sales and the Price of a commodity during a period of 10 days.

Sales 50 61 70 63 67 80 75 60 55 80
Price 100 90 85 92 92 84 90 95 98 88

a. Which characteristics is more consistent.

b. Find correlation coefficient between these two characteristics and comment.
c. Find coefficient of determination and comment.

2. The price index numbers of wheat (X) and rice (Y) at 12 successive seasons (quarters) are given below

X 87 84 88 102 101 84 72 84 83 98 97 100

Y 88 79 83 97 96 90 82 84 88 100 80 102

i) Calculate Karl Pearson Correlation coefficient between X and Y.

ii) Fit a line of regression of Y on X.
iii) Suggest what value of Y will be when X is expected to be 110?
 Y
105

100

95 f(x) = 0.576131687242798 x + 37.2314814814815

R² = 0.462944510136507
90

85

80

75

70
70 75 80 85 90 95 100 105

3. Following data represents Price and Demand of a commodity during a period of 10 days.

Price 15 12 10 16 11 14 20 17 13 19
Demand 30 35 38 28 36 32 22 25 34 20

a. Calculate Karl Pearson Correlation coefficient between Price and Demand.

b. Estimate the demand when the price is Rs. 18 per unit by using Linear Regression.
c. Estimate the price when the demand is 31 units by using Linear Regression.
4. Following data represents Sales and Profit of a Company during a period of 10 years.

Sales 25 20 38 46 34 42 28 33 40 36
Profit 12 15 18 25 20 22 16 20 24 21

i) Calculate Karl Pearson Correlation coefficient between Price and Demand.

ii) Estimate the profit when the sales is Rs. 35 Crods.
iii) Estimate the sales when the profit is Rs. 17 Lakhs.
5. Find the Spearman’s Rank Correlation coefficient between the scores in two subjects.

Subject A 55 62 68 45 30 55 50 62 58 49
Subject B 60 62 67 60 45 50 48 60 55 50

6. Find the Spearman’s Rank Correlation coefficient between the following characteristics.

X 30 17 35 28 42 25 17 28 30 28
Y 35 31 43 46 50 32 33 42 30 35