Exercises on Relationships

Between Variables
 Exercise on Correlation and Regression
1. Assume that you are a well known professional
forester of Ethiopia. Assume also that the Ministry
of Natural Resources has requested you to find out
whether there is a relationship between tree height
(X) and tree trunk diameter (Y) . To solve the
problem suppose you generated the following data
X 35 49 27 33 60 21 45 51
Y 8 9 7 6 13 8 11 12

a) Calculate the correlation coefficient

b) Interpret the result
c) Construct a scatter diagram and interpret it
Exercise on Correlation and Regression Continued ….
2. Assume that you have the following data price per
barrel of crude oil (X), and price per gallon of
gasoline (Y), perform the following.
a) Perform Pearson’s Coefficient of correlation
b) Determine the regression equation
c) Calculate the various sums of squares
d) Determine the coefficient of determination
e) Adjusted coefficient of determination

X 3.35 3.75 4.29 5.80 18.00 21.30 30.00 38.75 37.05 42.50 45.75 45.75
Y 0.38 0.40 0.43 0.57 0.80 0.85 0.98 1.20 1.15 1.35 1.40 1.25