Scatter diagram and correlation
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The production department of NDB Electronics wants to explore the relationship between the number of employees who assemble a subassembly and the number produced. As an experiment, two employees were assigned to assemble the subassemblies. They produced 15 during a one-hour period. Then four employees assembled them. They produced 25 during a one-hour period. The complete set of paired observations follows.
Number of Assemblers : One-Hour Production (units)
2 : 15
4 : 25
1 : 10
5 : 40
3 : 30
The dependent variable is production; that is, it is assumed that the level of production depends upon the number of employees.
Draw a scatter diagram.
Based on the scatter diagram, does there appear to be any relationship between the number of assemblers and production? Explain.
Compute the coefficient of correlation.
Evaluate the strength of the relationship by computing the coefficient of determination.
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