Homework SourseThe following data on sale price size and landtobuilding rat
The following data on sale price, size, and land-to-building ratio for 10 large industrial properties appeared in a paper.
17.2
(a) Calculate the value of the correlation coefficient between sale price and size. (Give the answer to three decimal places.)
r=
(b) Calculate the value of the correlation coefficient between sale price and land-to-building ratio. (Give the answer to three decimal places.)
r =
| Property | Sale Price (millions of dollars) | Size (thousands of sq. ft.) | Land-to- Building Ratio |
| 1 | 10.7 | 2166 | 2.1 |
| 2 | 2.6 | 751 | 3.4 |
| 3 | 30.6 | 2423 | 3.7 |
| 4 | 1.9 | 223 | 4.8 |
| 5 | 20.0 | 3917 | 1.7 |
| 6 | 7.9 | 2865 | 2.2 |
| 7 | 10.1 | 1699 | 3.0 |
| 8 | 6.6 | 1046 | 4.9 |
| 9 | 5.7 | 1108 | 7.5 |
| 10 | 4.4 | 405 | 17.2 |
Solution
For calculations in Part (a) and (b) Ms-Excel function CORREL is used.
(a)
r = 0.699
(b)
r = -0.330
(d) you have to provide part (c). Since part (d) is linked to part(c).
