From a sample of 10 observations, the following results were obtained: Y i = 1,110 X i

Question:

From a sample of 10 observations, the following results were obtained:

ΣYi = 1,110     ΣXi = 1,700     ΣXiYi = 205,500

ΣXi2 = 322,000                       ΣYi2 = 132,100

With coefficient of correlation r = 0.9758. But on rechecking these calculations it was found that two pairs of observations were recorded:

Y         X                                                 Y         X

  90        120      instead of                     80        110

140        220                                            150      210

What will be the effect of this error on r? Obtain the correct r.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Basic Econometrics

ISBN: 978-0073375779

5th edition

Authors: Damodar N. Gujrati, Dawn C. Porter

Question Posted: