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Correlation coefficient and regression

The city of Oakdale wishes to see if there is a linear relationship between the temperature and the amount of electricity used (in kilowatts). Based on the data in the table below, is there a significant linear relationship between temperature and the amount of electricity used?

Temperature (x) 73 78 85 98 93 81 76 105
Kilowatts (y) 680 760 910 1510 1170 837 600 1800

A. Yes, the sample correlation coefficient is equal to 0.981, which provides evidence of a significant linear relationship.
B. Yes, the sample correlation coefficient is equal to 0.878, which provides evidence of a significant linear relationship.
C. No, the sample correlation coefficient is equal to 0.098, which does not provide evidence of a significant linear relationship.
D. No, the sample correlation coefficient is equal to 0.981, which does not provide evidence of a significant linear relationship.

Solution Summary

The solution provides a step by step method for the calculation of the correlation coefficient. Formula for the calculation and interpretations of the results are also included. An interactive Excel sheet is included. The user can edit the inputs and obtain the complete results for a new set of data.

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