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Calculated coefficient of correlation between the price and quantity demanded. |
Answer» Solution : `R=(sumdx'dy'-((sumdx') XX(sumdy'))/(N))/(SQRT(sumdx'^(2)=((sumdx')^(2))/(N))xx sqrt(sumdy'^(2)-((sumdy')^(2))/(N)))` `=(-10-(0)/(5))/(sqrt(10-(0)/(5))xxsqrt(10-(0)/(5)))` `=(-10)/(sqrt(10)xxsqrt(10))=(-10)/(10)=-1` Coefficient of Correlation (r)=-1. This is a situation of perfectly negative correlation between price and quantity demanded. |
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