The controller of Yazoo Electronic Company would like to know how closely the incurrence of factory overhead in the company's Semiconductor Manufacturing Department correlates with machine hours. Total factory overhead over the past 12 months is $108,000, and 5,760 machine hours were logged in for the same period. The sum of the squares of the machine hour differences from average [∑(xi - )2] is 850, and the sum of the squares of the factory overhead cost differences from average [∑(yi - )2] is 3,400. The machine hour differences from average multiplied by the factory overhead cost differences from average and summed [∑(xi - )(yi - )] is 1,564.
Required
Compute the coefficient of correlation, r, and the coefficient of determination, r2, for factory overhead and machine hours in the Semiconductor Manufacturing Department.