Math Problem Statement

Find the correlation coefficient, r, of the data described below. An automobile dealership ran a radio ad campaign to help sell its least popular model. The dealership always used the same ad but broadcast it a different number of times each week. The sales manager tallied the number of ads broadcast each week, x, and the weekly sales of the model, y. Ads Sales 5 1 8 6 9 19 14 14 18 2 Round your answer to the nearest thousandth.

Solution

To find the correlation coefficient, rr, for the given data, we can use the formula:

r=n(xy)xy(nx2(x)2)(ny2(y)2)r = \frac{n \sum (xy) - \sum x \sum y}{\sqrt{ \left( n \sum x^2 - (\sum x)^2 \right) \left( n \sum y^2 - (\sum y)^2 \right) }}

where:

  • nn is the number of data points,
  • xx and yy are the given values,
  • x\sum x is the sum of xx values,
  • y\sum y is the sum of yy values,
  • xy\sum xy is the sum of the products of xx and yy for each data point,
  • x2\sum x^2 is the sum of the squares of xx,
  • y2\sum y^2 is the sum of the squares of yy.

Let's calculate each component step by step.

Step 1: Calculate the Sums

Using the data provided:

xxyyxyx \cdot yx2x^2y2y^2
515251
86486436
91917181361
1414196196196
182363244

Now, summing each column:

  • x=5+8+9+14+18=54\sum x = 5 + 8 + 9 + 14 + 18 = 54
  • y=1+6+19+14+2=42\sum y = 1 + 6 + 19 + 14 + 2 = 42
  • (xy)=5+48+171+196+36=456\sum (xy) = 5 + 48 + 171 + 196 + 36 = 456
  • x2=25+64+81+196+324=690\sum x^2 = 25 + 64 + 81 + 196 + 324 = 690
  • y2=1+36+361+196+4=598\sum y^2 = 1 + 36 + 361 + 196 + 4 = 598

Step 2: Substitute Values into the Formula

We have:

  • n=5n = 5,
  • x=54\sum x = 54,
  • y=42\sum y = 42,
  • (xy)=456\sum (xy) = 456,
  • x2=690\sum x^2 = 690,
  • y2=598\sum y^2 = 598.

Now, substituting these into the correlation coefficient formula:

r=54565442(5690542)(5598422)r = \frac{5 \cdot 456 - 54 \cdot 42}{\sqrt{ \left( 5 \cdot 690 - 54^2 \right) \left( 5 \cdot 598 - 42^2 \right) }}

Step 3: Perform the Calculations

  1. Calculate the numerator: 5456=2280,5442=22685 \cdot 456 = 2280, \quad 54 \cdot 42 = 2268 Numerator=22802268=12\text{Numerator} = 2280 - 2268 = 12

  2. Calculate the denominator:

    • For x2\sum x^2 part: 5690=3450,542=29165 \cdot 690 = 3450, \quad 54^2 = 2916 5690542=34502916=5345 \cdot 690 - 54^2 = 3450 - 2916 = 534
    • For y2\sum y^2 part: 5598=2990,422=17645 \cdot 598 = 2990, \quad 42^2 = 1764 5598422=29901764=12265 \cdot 598 - 42^2 = 2990 - 1764 = 1226

    So, the denominator is: 5341226=654684809.12\sqrt{534 \cdot 1226} = \sqrt{654684} \approx 809.12

  3. Calculate rr: r=12809.120.015r = \frac{12}{809.12} \approx 0.015

Final Answer

The correlation coefficient rr is approximately:

r0.015r \approx 0.015

This indicates a very weak positive correlation between the number of ads and weekly sales, suggesting little to no linear relationship.

Would you like more details or have any questions?

Here are some additional related questions:

  1. What does a low correlation coefficient imply about the data?
  2. How could we interpret a negative correlation coefficient if it were the case?
  3. How can the data be visualized to better understand the correlation?
  4. Are there other methods for assessing relationships besides correlation?
  5. What would a perfect correlation look like in this context?

Tip: For a better understanding of data relationships, try visualizing the data with a scatter plot before calculating correlation.

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Math Problem Analysis

Mathematical Concepts

Statistics
Correlation

Formulas

r = (nΣ(xy) - ΣxΣy) / sqrt((nΣx^2 - (Σx)^2)(nΣy^2 - (Σy)^2))

Theorems

Correlation Coefficient

Suitable Grade Level

Grades 10-12