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| 1. |
Calculated coefficient of correlation between the price and quantity demanded. |
| Answer» <html><body><p></p>Solution :<img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/TRJ_ECO_XI_C12_S01_006_S01.png" width="80%"/> <br/> `<a href="https://interviewquestions.tuteehub.com/tag/r-611811" style="font-weight:bold;" target="_blank" title="Click to know more about R">R</a>=(sumdx'dy'-((sumdx') <a href="https://interviewquestions.tuteehub.com/tag/xx-747671" style="font-weight:bold;" target="_blank" title="Click to know more about XX">XX</a>(sumdy'))/(N))/(<a href="https://interviewquestions.tuteehub.com/tag/sqrt-1223129" style="font-weight:bold;" target="_blank" title="Click to know more about SQRT">SQRT</a>(sumdx'^(<a href="https://interviewquestions.tuteehub.com/tag/2-283658" style="font-weight:bold;" target="_blank" title="Click to know more about 2">2</a>)=((sumdx')^(2))/(N))xx sqrt(sumdy'^(2)-((sumdy')^(2))/(N)))` <br/> `=(-10-(0)/(5))/(sqrt(10-(0)/(5))xxsqrt(10-(0)/(5)))` <br/> `=(-10)/(sqrt(10)xxsqrt(10))=(-10)/(10)=-1` <br/> Coefficient of Correlation (r)=-1. <br/> This is a situation of perfectly negative correlation between price and quantity demanded.</body></html> | |