The following data were obtained from a survey of the Employee income and their
expenditure.
Income (X) 1 2 3 4 6 9 10
Expenditure (Y) 2 4 5 7 8 12 13
Use ∑ ∑ ∑ =339
Use ∑ ∑ = 471 n=7
a) Compute the coefficient of linear correlation between X and Y and interpret the
result.
b) Fit the regression equation of the Expenditure of the employee on the employee’s
income.�
a) The coefficient of linear correlation between X and Y is 0.845. This indicates that there is a strong positive linear relationship between the employee's income and their expenditure.
b) The regression equation of the Expenditure of the employee on the employee's income is Y = 1.845X + 0.857.