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Home > Statistics Every Writer Should Know > The Stats Board > Discusssion

Correlation coefficient
Message posted by Joseph (via 152.163.207.64) on July 11, 2001 at 12:17 PM (ET)

Please help with following problem. Thank You.

Before moving away to college, Elizabeth is warned about the high cost of living to close to campus. To determine the validity of the warning, Elizabeth asks ten other students at registration how far they commute and how much they pay in rent. The data ia as follows:

Stud. Miles COM Rent
#1 3 $600
#2 2 $650
#3 5 $350
#4 1 $700
#5 3 $400
#6 6 $350
#7 2 $500
#8 7 $300
#9 5 $400
#10 2 $650

a)compute the appropriate correlation coefficient.


b) Test the significance of the obtained correlation at .05.


READERS RESPOND:
(In chronological order. Most recent at the bottom.)

Re: Correlation coefficient
Message posted by Paul (via 208.238.117.10) on July 13, 2001 at 5:53 PM (ET)

Your correlation coefficient (r) is -.888, and p value is .001. This indicates a fairly strong correlation between distance and cost. However, be very careful. Correlation does not mean causation! There could be numerous other unknown variables which could be a better predictor of your cost.



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