Page 496 - F2 - MA Integrated Workbook STUDENT 2018-19
P. 496

Chapter 18










                   Example 2



                                      Activity
                                       level         Cost
                                                                    2
                                         x             y           x             xy            y
                                                                                                2
                   Quarter 1             10          38.3         100           383        1,466.89
                   Quarter 2             12          42.7         144          512.4       1,823.29

                   Quarter 3             9           35.7          81          321.3       1,274.49
                   Quarter 4             14          47.2         196          660.8       2,227.84

                                       ––––          ––––        ––––         ––––––       –––––––
                                         45         163.9         521         1,877.5      6,792.51

                                       ––––          ––––        ––––         ––––––       –––––––

                                   (4 × 1,877.5) – (45 × 163.9)            134.5
                   r =   ——————————————————— =   ——–                                  = 1

                                                                      2
                                           2
                          √ ((4 × 521) − 45 )((4 × 6,792.51) – 163.9 )     134.5
                   This suggests perfect positive correlation.



































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