Question: Calculate Karl Pearson's coefficient of correlation from the

advertisement cost and sales as per the data given below: 

Advertisement Cost (in’000$) 39 65 62 90 82 75 25 98 36 78

Sales (in lakh$) 47 53 58 86 62 68 60 91 51 84
                                                                           
Solution:  Calculation of Coefficient of Correlation

Advt. Cost Dev. From Square of  Sales (in  Dev. From  Square of Product of
(‘000 $ ) Mean (65) Dev. Lakh $) Mean (65) Dev. Deviation
X    x          
            Xy
   X2    Y     Y    Y2

39 —26 676 47 —19 361 +494

65 +0 0 53 —13 169 0
62 —3 9 58 —8 64 +24
90 +25 625 86 +20 400 +500
82 +17 289 62 —4 16 — 68
75 +10 100 68 +2 4 + 20
25 —40 1600 60 —6 36 +240
98 +33 1089 91 +25 625 +825
36 —29 841 51 —15 225 +435
78 +13 169 84 +18 324 +234
∑X = ∑x = ∑ x2 = ∑Y= ∑ y2 = 2,224 ∑xy =
650 0 5,398 660 0 +2.704
n=10 n=10

 Mean of series (X ) = (∑X)/n = 650/10 = 65

 Mean of series (Y) = (∑Y)/n=660/10 = 66

 r = (∑xy)/(√(n&(∑x2)/n)× √((∑y2)/n)) = (+ 2704)/(√(10&5398/10)× √(2224/10))

= (+ 2704)/(10×23.233×14.913)= (+ 2704)/3464.737 = 0.7804

Problem: The weekly salaries of six employees at McDonalds are Rs.140, Rs.220,
Rs.90, Rs.180, Rs.140, and Rs.200.  For these six salaries, find:
(a) the mean (b) the median (c) the mode

Solution: List the data in order: 90, 140, 140, 180, 200, 220
                                                                               
Mean:    90+ 140+ 140+ 180 + 200 + 220 = 
                                        6                             

Median:    90,140,140,180,200,220
The two numbers that fall in the middle need to be averaged.     140 + 180 = 160
                           2 

Mode:   The number that appears the most is 140