University of Southeastern Philippines
eBA 201 Managerial Statistics
Exercise 6.1 Correlation Analysis
Name: Nathan Kit A. Berro
Compute the Pearson r value of the following data. Interpret the result. Test for the significance
of the Pearson r value using 5% level of significance.
A corporation owns several companies. The strategic planner of the corporation believes that
amount spent on advertising is significantly related to total sales. As an aid in long-term
planning, he gathers the following sales and advertising expenditures from several of the
companies for 2009 (Php million).
Advertising Expenditures Sales
10.5 130
18.1 250
12.6 148
4.7 55
21.8 338
60.4 994
37.6 541
6.3 89
17.8 125
43.2 370
Preliminary Computation:
Advertising
y^2 Sales x^2 xy
Expenditures
1 10.50 110.25 130.00 16,900.00 1,365.00
2 18.10 327.61 250.00 62,500.00 4,525.00
3 12.60 158.76 148.00 21,904.00 1,864.80
4 4.70 22.09 55.00 3,025.00 258.50
5 21.80 475.24 338.00 114,244.00 7,368.40
6 60.40 3,648.16 994.00 988,036.00 60,037.60
7 37.60 1,413.76 541.00 292,681.00 20,341.60
8 6.30 39.69 89.00 7,921.00 560.70
9 17.80 316.84 125.00 15,625.00 2,225.00
10 43.20 1,866.24 370.00 136,900.00 15,984.00
233.00 8,378.64 3,040.00 1,659,736.00 114,530.60
eBA 201 Managerial Statistics
Exercise 6.1 Correlation Analysis
Name: Nathan Kit A. Berro
Compute the Pearson r value of the following data. Interpret the result. Test for the significance
of the Pearson r value using 5% level of significance.
A corporation owns several companies. The strategic planner of the corporation believes that
amount spent on advertising is significantly related to total sales. As an aid in long-term
planning, he gathers the following sales and advertising expenditures from several of the
companies for 2009 (Php million).
Advertising Expenditures Sales
10.5 130
18.1 250
12.6 148
4.7 55
21.8 338
60.4 994
37.6 541
6.3 89
17.8 125
43.2 370
Preliminary Computation:
Advertising
y^2 Sales x^2 xy
Expenditures
1 10.50 110.25 130.00 16,900.00 1,365.00
2 18.10 327.61 250.00 62,500.00 4,525.00
3 12.60 158.76 148.00 21,904.00 1,864.80
4 4.70 22.09 55.00 3,025.00 258.50
5 21.80 475.24 338.00 114,244.00 7,368.40
6 60.40 3,648.16 994.00 988,036.00 60,037.60
7 37.60 1,413.76 541.00 292,681.00 20,341.60
8 6.30 39.69 89.00 7,921.00 560.70
9 17.80 316.84 125.00 15,625.00 2,225.00
10 43.20 1,866.24 370.00 136,900.00 15,984.00
233.00 8,378.64 3,040.00 1,659,736.00 114,530.60
