Calculate the coefficient of correlation between price of a good and its demand by direct method.

Calculate the coefficient of correlation between price of a good and i

1.	Calculate the coefficient of correlation between price of a good and its demand by direct method.
Answer» <html><body><p></p>Solution :<img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/ECO_XI_A_U03_C11_S01_001_S01.png" width="80%"/> <br/> `<a href="https://interviewquestions.tuteehub.com/tag/gamma-470142" style="font-weight:bold;" target="_blank" title="Click to know more about GAMMA">GAMMA</a>=(NSigmaXY-(SigmaX)(SigmaY))/(sqrt(NSigmaX^(2)-(SigmaX)^(2))sqrt(NSigmaY^(2)-(SigmaY)^(2)))` <br/> `gamma=((7xx517)-(28xx177))/(sqrt((7xx140)-(28)^(2))sqrt((7xx5869)-(<a href="https://interviewquestions.tuteehub.com/tag/177-278680" style="font-weight:bold;" target="_blank" title="Click to know more about 177">177</a>)^(2)))` <br/> `gamma=(3619-4956)/(sqrt((980-784))sqrt(41083-31329))` <br/> `gamma=(-1337)/(sqrt(<a href="https://interviewquestions.tuteehub.com/tag/196-281839" style="font-weight:bold;" target="_blank" title="Click to know more about 196">196</a>)xxsqrt(<a href="https://interviewquestions.tuteehub.com/tag/9754-1936735" style="font-weight:bold;" target="_blank" title="Click to know more about 9754">9754</a>))=(-1337)/(sqrt(196xx9754))` <br/> `=(-1337)/(sqrt(1911784))=(-1337)/(1382.67)=-0.97.`</body></html>