Assignment 3

XYZ delivery services have 10 people in their delivery system .A table was designed to assess the
relationship between work hours(x) and the number of deliveries(y) they made in a week.

Name Work hours Deliveries

A 30 30
B 20 28
C 10 15
D 40 45
E 8 12
F 25 40
G 22 25
H 33 44
I 27 36
J 10 20

Calculate the value of the product moment correlation between x and y .

Perform a simple linear regression analysis to predict x and y.
Solution:

Work hours Deliveries

Name x^2 y^2 xy
x y
A 30 30 900 900 900
B 20 28 400 784 560
C 10 15 100 225 150
D 40 45 1600 2025 1800
E 8 12 64 144 96
F 25 40 625 1600 1000
G 22 25 484 625 550
H 33 44 1089 1936 1452
I 27 36 729 1296 972
J 10 20 100 400 200
∑x ∑y ∑x2 ∑y2 ∑xy
225 295 6091 9935 7680
n = Number of values or elements =10
mean x=22.5
mean y=29.5
∑x = Sum of 1st values list=225
∑y = Sum of 2nd values list=295
∑xy = Sum of the product of 1st and 2nd values=7680
∑x2 = Sum of squares of 1st values=6091
∑y2 = Sum of squares of 2nd values=9935
sx2 = (6091/10) – (22.5 ) 2
=102.85

sx =10.14
sy2 =(9935/10) – (29.5)2
=123.25

Sy=11.10
Cov(x,y) = 768-(22.5 x 29.5)
= 104.25
r = 104.25/(10.14 x 11.10)
= 0.926 [ This shows a strong positive co-relation ]

a = 6.775(rounded to 3 decimal places)

b = 1.013(rounded to 3 decimal places)

Therefore , the regression equation is ,

Y=6.775+1.013X
Calculate the difference between ranks for each delivery person in both disciplines for work hours and
deliveries made and square the differences.

Work
Deliveries Rank Rank
Name hours
y x y
x
A 30 30 2 5
B 20 28 3 3
C 10 15 4 2
D 40 45 1 1
E 8 12 5 4

Solution:

Work hours Deliveries Rank Rank Rank^2 Rank^2

Name
x y x y x y
A 30 30 2 5 4 25
B 20 28 3 3 9 9
C 10 15 4 2 16 4
D 40 45 1 6 1 36
E 8 12 1 4 1 16
∑rank(x) 2 ∑rank(y)2
31 90

Using the formula for Spearman's rank correlation coefficient (ρ):

ρ=1 - ( 6 (∑rank(x)2 ) / n(n2-1))

=1-(6x31) / (5x24)
=1-186/120

= - 0.55

 A negative correlation signifies that as one variable(x) increases, the other tends to
decrease(y).
 This ρ value suggests a strong positive rank correlation

Arkaprava Saha
Roll : 44 ; MBA-PS