Question: The scatter chart in the following figure was created using sample data for profits and market capitalizations from the following sample of firms in the

The scatter chart in the following figure wasThe scatter chart in the following figure wasThe scatter chart in the following figure wasThe scatter chart in the following figure was

The scatter chart in the following figure was created using sample data for profits and market capitalizations from the following sample of firms in the Fortune 500. \begin{tabular}{|c|c|c|} \hline Kraft Foods & 3,527.00 & 65,917.40 \\ \hline Kroger & 602.00 & 13,819.50 \\ \hline Lockheed Martin & 2,655.00 & 26,651.10 \\ \hline Medco Health Solutions & 1,455.70 & 21,865.90 \\ \hline Owens Corning & 276.00 & 3,417.80 \\ \hline Pitney Bowes & 617.50 & 3,681.20 \\ \hline Procter \& Gamble & 11,797.00 & 182,109.90 \\ \hline Ralph Lauren & 567.60 & 12,522.80 \\ \hline Rockwell Automation & 697.80 & 10,514.80 \\ \hline Rockwell Collins & 634.00 & 8,560.50 \\ \hline United Stationers & 109.00 & 1,381.60 \\ \hline United Technologies & 4,979.00 & 66,606.50 \\ \hline UnitedHealth Group & 5,142.00 & 53,469.40 \\ \hline \end{tabular} (a) Discuss what the scatter chart indicates about the relationship between profits and market capitalization? The scatter chart indicates that there may be a negative linear relationship between profits and market capitalization. The scatter chart indicates that there may be a positive linear relationship between profits and market capitalization. The scatter chart indicates that there is a negative nonlinear relationship between profits and market capitalization. The scatter chart indicates that there is no apparent relationship between profits and market capitalization. The scatter chart indicates that there is a positive nonlinear relationship between profits and market capitalization. (b) Calculate the covariance between profits and market capitalization. (Round your answer to three decimal places.) Discuss what the covariance indicates about the relationship between profits and market capitalization. The covariance indicates that there is some positive relationship between profits and market capitalization. The covariance indicates that there is some negative relationship between profits and market capitalization. The covariance indicates that there is no relationship between profits and market capitalization. The covariance indicates that there is a strong positive relationship between profits and market capitalization. The covariance indicates that there is a strong negative relationship between profits and market capitalization. (c) Calculate the correlation coefficient between profits and market capitalization. (Round your answer to four decimal places.) What does the correlation coefficient indicate about the relationship between profits and market capitalization? The correlation coefficient indicates that there is a weak positive relationship between profits and market capitaliza The correlation coefficient indicates that there is a strong negative relationship between profits and market capitione The correlation coefficient indicates that there is a strong positive relationship between profits and market capition The correlation coefficient indicates that there is no relationship between profits and market capitalization. The correlation coefficient indicates that there is a weak negative relationship between profits and market capitalizat

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