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Correlation analysis in Megastat

Instructions for Exercises 12.4-12.6:
(a) Make a scatter plot of the data. What does it suggest about the correlation between X and Y?
(b) Use Excel, MegaStat, or MINITAB to calculate the correlation coefficient.
(c) Use Excel or Appendix D to find t.05 for a two-tailed test. (d) Calculate the t test statistic.
(e) Calculate the critical value of rα. (f) Can you reject ρ = 0?

12.5 Portfolio Returns on Selected Mutual Funds Portfolio
Last Year (X) This Year (Y)
11.9 15.4
19.5 26.7
11.2 18.2
14.1 16.7
14.2 13.2
5.2 16.4
20.7 21.1
11.3 12.0
−1.1 12.1
3.9 7.4
12.9 11.5
12.4 23.0
12.5 12.7
2.7 15.1
8.8 18.7
7.2 9.9
5.9 18.9

Solution Summary

The solution provides step by step method for the calculation of correlation in Megastat . Formula for the calculation and Interpretations of the results are also included.

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