ECON 230 - Statistics and

Data Analysis
Lecture 1

Course Outline
Instructor: Amin Hussain
Contact:
Email: [email protected]
Room 254

Course Information:
Introduction to elementary probability and
statistics
Application and use of statistics in Economics
Evaluation and Interpretation of statistics
Preparation for Econometrics

Details: 4 credit hours (TuTh 8:00 9:50)

Course Outline - II
Books
Ross, Sheldon . A First Course in Probability
Moore, David S. and McCabe, George P.,
Introduction to the Practice of Statistics
Newbold, P., Carlson, W. and Thorne, B.
Statistics for Business and Economics

Grading
Quizzes - 20
Assignments - 20
Mid - 25
Final - 35

Topics

Introduction
Probability
Random Variables
Sampling
Estimation
Hypothesis Testing
Regression

Applications

Big Data
Quality Control
Operations Research
Medicine
Law
Etc.

"There are three kinds of lies: lies,

damned lies, and statistics."

Dealing with Uncertainty

The price of IBM stock is likely to be higher in

six months than it is now.
If the federal budget deficit is as high as
predicted, it is probable that interest rates will
remain high for the rest of the year.

Statistics for Business

and Economics, 6e
2007 Pearson Education,

Chap 1-7

Key Definitions
A population is the collection of all items of
interest or under investigation
N represents the population size
A sample is an observed subset of the
population
n represents the sample size
A parameter is a specific characteristic of a
population
forABusiness
statistic is a specific characteristic of a
Statistics
and Economics, 6e
Chap 1-8
sample
2007 Pearson
Education,

Population vs. Sample

Populatio
n
a b

Sample

cd

ef gh i jk l m n

gi

o p q rs t u v w
x y

n
r

Values calculated using

population data are
parameters
Statisticscalled
for Business
and Economics, 6e
2007 Pearson Education,

Values computed from

sample data are called
statistics
Chap 1-9

Examples of Populations
Names of all registered voters in
Pakistan
Incomes of all families living in
Islamabad
Annual returns of all stocks traded on
the New York Stock Exchange
Grade point averages of all the students
Statisticsin
for Business
LUMS
and Economics, 6e
2007 Pearson Education,

Chap 1-10

Random Sampling
Simple random sampling is a procedure in
which
each member of the population is chosen strictly by
chance,
each member of the population is equally likely to be
chosen,
and
every possible sample of n objects is equally likely to be
chosen

The resulting sample is called a random

sample
Statistics for Business
and Economics, 6e
2007 Pearson Education,

Chap 1-11

Descriptive and Inferential

Statistics
Two branches of statistics:
Descriptive statistics
Collecting, summarizing, and processing
data to transform data into information

Inferential statistics
provide the bases for predictions,
forecasts, and estimates that are used to
transform information into knowledge
Statistics for Business
and Economics, 6e
2007 Pearson Education,

Chap 1-12

Descriptive Statistics
Collect data
e.g., Survey

Present data
e.g., Tables and graphs

Summarize data
e.g., Sample mean
=X i
n

Statistics for Business

and Economics, 6e
2007 Pearson Education,

Chap 1-13

Inferential Statistics
Estimation
e.g., Estimate the
population mean weight
using the sample mean
weight
Hypothesis testing
e.g., Test the claim that the
population mean weight is
120 pounds
Inference is the process of drawing conclusions or making
decisions about a population based on sample results
Statistics for Business
and Economics, 6e
2007 Pearson Education,

Chap 1-14

Types of Data
Data

Categorical

Numerical

Examples:

Marital Status
Discrete
Continuous
Are you registered to
vote?
Examples:
Examples:
Eye Color

(Defined categories or
Number of Children
Weight
groups)

Defects per hour

Voltage
(Counted items)
(Measured characteristics)

Measurement Levels
Differences
between
measurements,
true zero exists

Ratio Data
Quantitative
Data

Differences
between
measurements but
no true zero

Interval Data

Ordered Categories
(rankings, order, or
scaling)

Ordinal Data
Qualitative Data

Categories (no
ordering or
direction)

Nominal Data

Graphical
Presentation of Data
Data in raw form are usually not
easy to use for decision making
Some type of organization is
needed
Table
Graph

The type of graph to use depends

on the variable being summarized

Graphical
Presentation of Data
Techniques reviewed in this
chapter:
Categorical
Variables

Frequency distribution
Bar chart
Pie chart
Pareto diagram

(continue
d)

Numerical
Variables

Line chart
Frequency distribution
Histogram and ogive
Stem-and-leaf display
Scatter plot

Tables and Graphs for

Categorical Variables
Categorical
Data

Tabulating Data

Frequency
Distribution
Table

Graphing Data

Bar

Chart

Pie Chart

Pareto
Diagram

The Frequency
Distribution Table
Summarize data by
category
Example: Hospital Patients
by
Unit
Hospital
Unit
Number of Patients
Cardiac Care
Emergency
Intensive Care
Maternity
Surgery

(Variables
are
categorical)

1,052
2,245
340
552
4,630

Bar and Pie

Charts
Bar charts and Pie charts are
often used for qualitative
(category) data
Height of bar or size of pie slice
shows the frequency or
percentage for each category

Bar Chart Example

Hospital
Number
Unit
Patients

of

Cardiac Care
1,052
Emergency 2,245
Intensive Care
340
Maternity
552
Surgery
4,630

Pie Chart Example

Hospital
% of
Unit
Patients

Total

Number
of

Cardiac Care
1,052
11.93
Emergency 2,245
Intensive Care
340
3.86
Maternity
552
Surgery
4,630

25.46

6.26
52.50

(Percentage
s are
rounded to
the nearest
percent)

Pareto Diagram
Used to portray categorical data
A bar chart, where categories are
shown in descending order of
frequency
A cumulative polygon is often shown
in the same graph
Used to separate the vital few from
the trivial many

Pareto Diagram Example

Example: 400 defective items are
examined
for
cause
of defect:
Source
of
Manufacturing Error

Number of defects

Bad Weld

34

Poor Alignment

223

Missing Part

25

Paint Flaw

78

Electrical Short

19

Cracked case

21

Total

400

Pareto Diagram Example

(continue
d)

Sort by defect cause, in

descending order
Step
2: Determine
% in each category
Source
of
Step 1:

Manufacturing Error

Number of defects

% of Total Defects

Poor Alignment

223

55.75

Paint Flaw

78

19.50

Bad Weld

34

8.50

Missing Part

25

6.25

Cracked case

21

5.25

Electrical Short

19

4.75

Total

400

100%

Pareto Diagram Example

cumulative % (line
graph)

% of defects in each
category (bar graph)

Step 3: Show results graphically

(continue
d)

Graphs for Time-Series Data

A line chart (time-series plot) is used
to show the values of a variable over
time
Time is measured on the horizontal
axis
The variable of interest is measured
on the vertical axis

Line Chart Example

Graphs to Describe
Numerical Variables
Numerical
Data
Frequency Distributions
and
Cumulative Distributions

Histogram

Ogive

Stem-and-Leaf
Display

Frequency Distributions
What is a Frequency Distribution?
A frequency distribution is a list or a
table
containing class groupings
(categories or ranges within which
the data fall) ...
and the corresponding frequencies
with which data fall within each

Why Use Frequency

Distributions?
A frequency distribution is a way
to summarize data
The distribution condenses the
raw data into a more useful
form...
and allows for a quick visual
interpretation of the data

Class Intervals
and Class Boundaries
Each class grouping has the same
width
largest
number
smallest
number
wDetermine
the
width
of
each
interval
interval width
number of desired intervals
by

Use at least 5 but no more than 15-20

intervals
Intervals never overlap
Round up the interval width to get
desirable interval endpoints

Frequency Distribution
Example
Example: A manufacturer of insulation
randomly selects 20 winter days and
records the daily high temperature
24, 35, 17, 21, 24, 37, 26,
46, 58, 30,
32, 13, 12, 38, 41, 43, 44,
27, 53, 27

Frequency Distribution Example

Sort raw data in ascending order:

(continued
)

12, 13, 17, 21, 24, 24, 26, 27, 27, 30, 32, 35, 37, 38, 41, 43, 44, 46,
53, 58

Find range: 58 - 12 = 46
Select number of classes:

5 (usually between 5 and

15)

Compute interval width: 10 (46/5 then round up)

Determine interval boundaries: 10 but less than 20,
20 but less than 30, . . . , 60 but less than 70

Count observations & assign to classes

Frequency Distribution
Example
Data in ordered array:

(continued
)

12, 13, 17, 21, 24, 24, 26, 27, 27, 30, 32, 35, 37, 38, 41,
43, 44, 46, 53, 58
Interval

Relative
Frequency
Frequenc
y

10 but less than 20

20 but less than 30
30 but less than 40

40 but less than 50

50 but less than 60

100

Total

.15
6
5

.30
.25
.20

20

Percentag
e15
30
25
20
.10

1.00

10

Histogram
A graph of the data in a frequency
distribution is called a histogram
The interval endpoints are shown on
the horizontal axis
the vertical axis is either frequency,
relative frequency, or percentage
Bars of the appropriate heights are used
to represent the number of observations
within each class

Histogram Example
Interval
10
3
20
6
30
5
40
4
50
2

Frequency

but less than 20

but less than 30
but less than 40
but less than 50
but less than 60

(No gaps
between
bars)

10
20
30
40
70 Temperature in
Degrees

50

60

Questions for Grouping

Data
into Intervals
1. How wide should each interval
be?
(How many classes should be used?)

2. How should the endpoints of the

intervals be determined?
Often answered by trial and error, subject
to user judgment
The goal is to create a distribution that is
neither too "jagged" nor too "blocky
Goal is to appropriately show the pattern
of variation in the data

How Many Class

Intervals?
Many (Narrow class intervals)
may yield a very jagged
distribution with gaps from empty
classes
Can give a poor indication of how
frequency varies across classes
Few (Wide class intervals)
may compress variation too much
and yield a blocky distribution
can obscure important patterns of
variation.
(X axis labels are upper class
endpoints)

The Cumulative
Frequency Distribuiton
Data in ordered array:

12, 13, 17, 21, 24, 24, 26, 27, 27, 30, 32, 35, 37, 38, 41,
43, 44, 46, 53, 58
Cumulativ Cumulati
Frequenc Percenta
e
ve
y
ge
Frequency Percenta
but less than 20
3
15
3ge
15
but less than 30
6
30
9
45
but less than 40
5
25
14
70
but less than 50
4
20
18
90
Class

10
20
30
40

The Ogive

Graphing Cumulative Frequencies

Interval
Less than 10
0
10 but less than
15
20 but less than
45
30 but less than
70
40 but less than
90
50 but less than
100

Upper
interval Cumulative
endpoi Percentage
nt
10
20

20

30

30

40

40

50

50

60

60

Interval endpoints

Distribution Shape
The shape of the distribution is said
to be symmetric if the
observations are balanced, or
evenly distributed, about the
center.
Frequency

Symmetric Distribution

10
9
8
7
6
5
4
3
2
1
0

Distribution Shape
(continued
)
be

The shape of the distribution is said to

skewed if the observations are not
symmetrically distributed around the center.
Positively Skewed Distribution
12
10
Frequency

A positively skewed distribution

(skewed to the right) has a tail
that extends to the right in the
direction of positive values.

8
6
4
2
0
1

Negatively Skewed Distribution

12
10
Frequency

A negatively skewed distribution

(skewed to the left) has a tail
that extends to the left in the
direction of negative values.

8
6
4
2
0
1

Relationships Between
Variables
Graphs illustrated so far have involved only
a single variable
When two variables exist other techniques
are used:
Categorical
(Qualitative)
Variables

Numerical
(Quantitative)
Variables

Cross tables

Scatter plots

Scatter Diagrams
Scatter Diagrams are used for
paired observations taken from
two numerical variables
The Scatter Diagram:
one variable is measured on the
vertical axis and the other variable
is measured on the horizontal axis

Scatter Diagram Example

Volume
per day

Cost per
day

23

125

26

140

29

146

33

160

38

167

42

170

50

188

55

195

60

200

Graphing
Multivariate Categorical Data
(continued
)

Side by side bar charts

C o m p a rin g In v e s to rs
S avings
CD
B onds
S toc k s
0

10
Inves tor A

20

30
Inves tor B

40

50
Inves tor C

60

Side-by-Side Chart Example

Sales by quarter for three sales territories:

Data Presentation Errors

Goals for effective data presentation:
Present data to display essential
information
Communicate complex ideas clearly
and accurately
Avoid distortion that might convey
the wrong message

Data Presentation Errors

(continued
)

Unequal histogram interval

widths
Compressing or distorting the
vertical axis
Providing no zero point on the
vertical axis
Failing to provide a relative
basis in comparing data
between groups

Statistics for
Business and Economics
6th Edition

Chapter 3
Describing Data: Numerical
Statistics for Business and
Economics, 6e 2007 Pearson
Education, Inc.

Chap 3-52

Chapter Topics
Measures of central tendency,
variation, and shape
Mean, median, mode, geometric mean
Quartiles
Range, interquartile range, variance and
standard deviation, coefficient of
variation
Symmetric and skewed distributions

Population summary measures

Mean, variance, and standard deviation

Statistics for Business

and Economics, 6e
2007 Pearson Education,

Chap 3-53

Chapter Topics
(continued
)

Five number summary and box-andwhisker plots

Covariance and coefficient of
correlation
Pitfalls in numerical descriptive
measures and ethical considerations

Statistics for Business

and Economics, 6e
2007 Pearson Education,

Chap 3-54

Describing Data Numerically

Describing Data
Numerically
Central
Tendency
Arithmetic
Mean
Median

Variation
Range
Interquartile
Range
Variance

Mode

Statistics for Business

and Economics, 6e
2007 Pearson Education,

Standard
Deviation
Coefficient of
Variation
Chap 3-55

Measures of Central Tendency

Overview
Central Tendency

Mean

Median

Mode

x
i1

Arithmetic
average
Statistics for Business
and Economics, 6e
2007 Pearson Education,

Midpoint of
ranked
values
Chap 3-56

Most
frequently
observed
value

Arithmetic Mean
The arithmetic mean (mean) is the
most common measure of central
tendency
N

For a population
of N values:
xi
x1 x 2 x N

N
N
i1

Population
values

Population
size

xi

For a sample
of
x1 size
x 2 n:
xn
i1
Statistics for Business
and Economics, 6e
2007 Pearson Education,

n
Chap 3-57

Observed
values

Sample size

Arithmetic Mean
(continue
d)

The most common measure of central tendency

Mean = sum of values divided by the number of
values
Affected by extreme values (outliers)
0 1 2 3 4 5 6 7 8 9
10

0 1 2 3 4 5 6 7 8 9
10

Mean = 3

Mean = 4

1 2 3 4 5 15

3
5
5
Statistics for Business
and Economics, 6e
2007 Pearson Education,

1 2 3 4 10 20

4
5
5
Chap 3-58

Median
In an ordered list, the median is the
middle number (50% above, 50%
below)
0 1 2 3 4 5 6 7 8 9
10

0 1 2 3 4 5 6 7 8 9
10

Median = 3

Median = 3

Not affected by extreme values

Statistics for Business

and Economics, 6e
2007 Pearson Education,

Chap 3-59

Finding the Median

The location of the median:
n 1
Median position
position in the ordered data
2

If the number of values is odd, the median is the middle

number
If the number of values is even, the median is the
average of the two middle numbers

Note

n 1
that2

is not the value of the median,

only the position of the median in the ranked data

Statistics for Business

and Economics, 6e
2007 Pearson Education,

Chap 3-60

Mode

A measure of central tendency

Value that occurs most often
Not affected by extreme values
Used for either numerical or
categorical data
There may may be no mode
There may be several modes
0 1 2 3 4 5 6 7 8 9 10 11 12 13
14
Statistics for Business
and Economics, 6e
2007 Pearson Education,

Mode = 9

Chap 3-61

0 1 2 3 4 5 6
No Mode

Review Example
Five houses on a hill by the beach
$2,000 K

House Prices:
$2,000,000
500,000
300,000
100,000
100,000

$500 K
$300 K

$100 K
$100 K
Statistics for Business
and Economics, 6e
2007 Pearson Education,

Chap 3-62

Review Example:
Summary Statistics
House Prices:
$2,000,000
500,000
300,000
100,000
100,000
Sum
Statistics for Business
3,000,000

and Economics, 6e
2007 Pearson Education,

Mean: ($3,000,000/5)
= $600,000
Median: middle value of ranked
data
= $300,000
Mode: most frequent value
= $100,000
Chap 3-63

Which measure of location

is the best?
Mean is generally used, unless
extreme values (outliers) exist
Then median is often used,
since the median is not
sensitive to extreme values.
Example: Median home prices
may be reported for a region
less sensitive to outliers
Statistics for Business
and Economics, 6e
2007 Pearson Education,

Chap 3-64

Shape of a Distribution
Describes how data are distributed
Measures of shape
Symmetric or skewed
Left-Skewed

Symmetric

Right-Skewed

Mean < Median

Mean = Median

Median < Mean

Statistics for Business

and Economics, 6e
2007 Pearson Education,

Chap 3-65

Measures of Variability
Variation

Range

Interquartil
e
Range

Variance

Standard
Deviation

Measures of variation give

information on the spread or
variability of the data values.

Statistics for Business

and Economics, 6e
2007 Pearson Education,

Chap 3-66

Same center,
different
variation

Coefficient
of Variation

Range
Simplest measure of variation
Difference between the largest and
the smallest observations:
Range = Xlargest Xsmallest
Example:
0 1 2 3 4 5 6 7 8 9 10 11 12

Range = 14 - 1 = 13
Statistics for Business
and Economics, 6e
2007 Pearson Education,

Chap 3-67

13 14

Disadvantages of the
Range
Ignores the way in which data are
distributed
7
8
9
10 11
12
Range = 12 - 7 = 5

7
8
9 10
11
12Range = 12 - 7 = 5

1,1,1,1,1,1,1,1,1,1,1,2,2,2,2,2,2,2,2,3,3,3,3,4,5
Sensitive to outliers
Range = 5 - 1 = 4

1,1,1,1,1,1,1,1,1,1,1,2,2,2,2,2,2,2,2,3,3,3,3,4,120
Statistics for Business
and Economics, 6e
2007 Pearson Education,

Range = 120 - 1 =
119
Chap 3-68

Interquartile Range
Can eliminate some outlier problems by
using the interquartile range
Eliminate high- and low-valued
observations and calculate the range of
the middle 50% of the data
Interquartile range = 3rd quartile 1st
quartile
IQR = Q3 Q1

Statistics for Business

and Economics, 6e
2007 Pearson Education,

Chap 3-69

Interquartile Range
Example:
X

minimum

Q1

25%

12

Median
(Q2)
25%

30

Q3
25%

45

Interquartile range
= 57 30 = 27

Statistics for Business

and Economics, 6e
2007 Pearson Education,

Chap 3-70

maximum

25%

57

70

Quartiles
Quartiles split the ranked data into 4
segments with an equal number of values
per segment
25%

Q1

25%

25%

Q2

25%

Q3

The first quartile, Q1, is the value for which 25% of

the observations are smaller and 75% are larger
Q2 is the same as the median (50% are smaller,
50% are larger)
Only 25% of the observations are greater than the
third quartile

Statistics for Business

and Economics, 6e
2007 Pearson Education,

Chap 3-71

Quartile Formulas
Find a quartile by determining the value in
the appropriate position in the ranked data,
where
First quartile position:

Q1 = 0.25(n+1)

Second quartile position: Q2 = 0.50(n+1)

(the median position)
Third quartile position:

Q3 = 0.75(n+1)

where n is the number of observed values

Statistics for Business
and Economics, 6e
2007 Pearson Education,

Chap 3-72

Quartiles

Example: Find the first

quartile

Sample Ranked Data: 11 12 13 16 16 17 18 21 22

(n = 9)
Q1 = is in the

0.25(9+1) = 2.5 position of the ranked data

so use the value half way between the 2nd and 3rd values,
so

Statistics for Business

and Economics, 6e
2007 Pearson Education,

Q1 = 12.5

Chap 3-73

Population Variance
Average of squared deviations of
values from the mean
N

Population variance:

Where

(x )
i

i1

N -1

= population mean
N = population size

Statistics for Business

and Economics, 6e
2007 Pearson Education,

xi = ith value of the variable x

Chap 3-74

Sample Variance
Average (approximately) of squared
deviations of values from the mean
n

Sample variance:

s
2

Where

(x x)
i1

n -1

X = arithmetic mean
n = sample size

Statistics for Business

and Economics, 6e
2007 Pearson Education,

Xi = ith value of the variable X

Chap 3-75

Population Standard
Deviation
Most commonly used measure of
variation
Shows variation about the mean
Has the same units as the original
data
N

2
(x

i
Population standard
deviation:
i1
N -1
Statistics for Business
and Economics, 6e
2007 Pearson Education,

Chap 3-76

Sample Standard Deviation

Most commonly used measure of
variation
Shows variation about the mean
Has the same units as the original
n
data
(x x)2

Sample standard deviation:

Statistics for Business
and Economics, 6e
2007 Pearson Education,

Chap 3-77

i 1

n -1

Calculation Example:
Sample Standard
Deviation
Sample
Data (xi) :

10

12

14

n=8

15

17

18

18

24

Mean = x = 16

(10 X)2 (12 x)2 (14 x)2 (24 x)2

n 1
(10 16)2 (12 16)2 (14 16)2 (24 16)2
8 1

126

Statistics for Business

76e
and Economics,
2007 Pearson Education,

4.2426

A measure of the average

scatter around the mean
Chap 3-78

Measuring variation
Small standard deviation
Large standard deviation

Statistics for Business

and Economics, 6e
2007 Pearson Education,

Chap 3-79

Comparing Standard
Deviations
Data A
11 12
20 21

13

14

15

16

17

18

Mean = 15.5
s = 3.338

19

Data B
Mean = 15.5
11 12
20 21

13

14

15

16

17

18

s=

19

0.926

Data C
Mean = 15.5
11 12
21

13

Statistics for Business

and Economics, 6e
2007 Pearson Education,

14

15

16

17

Chap 3-80

18

19

20

s=

4.570

Advantages of Variance and

Standard Deviation
Each value in the data set is used
in the calculation
Values far from the mean are
given extra weight
(because deviations from the mean are
squared)
Statistics for Business
and Economics, 6e
2007 Pearson Education,

Chap 3-81

The Empirical Rule

If the data distribution is bellshaped, then the interval:
1
contains about 68% of the
values in
the population or the
sample
68%

Statistics for Business

and Economics, 6e
2007 Pearson Education,

1
Chap 3-82

The Empirical Rule

2
contains about 95% of the
values in
3
the population or the sample

contains about 99.7% of the

values
in the population or the
sample
95%

99.7%

Statistics for Business

and Economics, 6e
2007 Pearson Education,

Chap 3-83

Approximations for Grouped

Data
Suppose a data set contains values m1, m2, . . .,
mk, occurring with frequencies f1, f2, . . . fK
For a population of N observations the mean is
K

fimi

where N fi

i1

i 1

For a sample of n observations, the mean is

K

Statistics for Business

and Economics, 6e
2007 Pearson Education,

fm
i1

Chap 3-84

where n fi
i1

Approximations for Grouped

Data
Suppose a data set contains values m1, m2, . . .,
mk, occurring with frequencies f1, f2, . . . fK
For a population of N observations the
K
variance is
2
f
(m

i
i
2 i1
N
For a sample of nK observations, the variance is
Statistics for Business
and Economics, 6e
2007 Pearson Education,

s2

2
f
(m

x
)
i i
i1

n 1

Chap 3-85

The Sample Covariance

The covariance measures the strength of the linear

relationship between two variables

The population covariance:

N

Cov (x , y) xy

(x
i

i1

)(y i y )

The sample covariance:

n

Cov (x , y) s xy

(x x)(y y)
i1

n 1

Only concerned with the strength of the relationship

No causal effect is implied
Statistics for Business
and Economics, 6e
2007 Pearson Education,

Chap 3-86

Interpreting Covariance
Covariance between two variables:
Cov(x,y) > 0
direction

x and y tend to move in the same

Cov(x,y) < 0
directions

x and y tend to move in opposite

Cov(x,y) = 0

x and y are independent

Statistics for Business

and Economics, 6e
2007 Pearson Education,

Chap 3-87

Coefficient of Correlation
Measures the relative strength of the linear
relationship between two variables
Population correlation coefficient:

Cov (x , y)

XY
Sample correlation coefficient:

Cov (x , y)
r
sX sY
Statistics for Business
and Economics, 6e
2007 Pearson Education,

Chap 3-88

Features of
Correlation Coefficient, r
Unit free
Ranges between 1 and 1
The closer to 1, the stronger the negative linear
relationship
The closer to 1, the stronger the positive linear
relationship
The closer to 0, the weaker any positive linear
relationship
Statistics for Business
and Economics, 6e
2007 Pearson Education,

Chap 3-89

Scatter Plots of Data with

Various Correlation Coefficients
Y

r = -1

r = -.6

r=0
Y

Statistics for Business

r = +1
and Economics, 6e
2007 Pearson Education,

X
r = +.3

Chap 3-90

X
r=0