College football is big business, with coaches’ total pay and revenues, in millions of dollars. The file College Football contains the coaches’ pay and revenues for college football at 105 of the 124 schools that are part of the Division I Football Bowl ­Subdivision. Source: Data extracted from “College Football Coaches Continue to See Salary Explosion,” USA Today, November 20, 2012.
a. Compute the covariance.
b. Compute the coefficient of correlation.
c. Based on (a) and (b), what conclusions can you reach about the relationship between coaches’ total pay and revenues?