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The document outlines a method to calculate the correlation between monthly electricity bills and home expenses using a hypothetical dataset for 12 months. It details the steps for calculating averages, deviations, sums of products, and sums of squares, ultimately leading to a correlation coefficient of approximately 0.207. This indicates a weak positive correlation between the two variables.

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luciferdeville1234
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11 views2 pages

Stastict

The document outlines a method to calculate the correlation between monthly electricity bills and home expenses using a hypothetical dataset for 12 months. It details the steps for calculating averages, deviations, sums of products, and sums of squares, ultimately leading to a correlation coefficient of approximately 0.207. This indicates a weak positive correlation between the two variables.

Uploaded by

luciferdeville1234
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as TXT, PDF, TXT or read online on Scribd
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To calculate the correlation between monthly electricity bills and home expenses,

we'll first create a hypothetical dataset for 12 months. Then, we'll calculate the
correlation manually.

### Hypothetical Data

| Month | Electricity Bill ($) | Home Expenses ($) |


|-----------|-----------------------|--------------------|
| January | 100 | 800 |
| February | 110 | 820 |
| March | 95 | 750 |
| April | 105 | 780 |
| May | 120 | 900 |
| June | 130 | 950 |
| July | 140 | 1000 |
| August | 115 | 850 |
| September | 125 | 890 |
| October | 135 | 940 |
| November | 145 | 1100 |
| December | 150 | 1200 |

### Step 1: Calculate Averages

1. **Mean of Electricity Bills (EB)**


\[
\text{Mean EB} = \frac{100 + 110 + 95 + 105 + 120 + 130 + 140 + 115 + 125 + 135
+ 145 + 150}{12} = \frac{1,505}{12} \approx 125.42
\]

2. **Mean of Home Expenses (HE)**


\[
\text{Mean HE} = \frac{800 + 820 + 750 + 780 + 900 + 950 + 1000 + 850 + 890 +
940 + 1100 + 1200}{12} = \frac{11,000}{12} \approx 916.67
\]

### Step 2: Calculate Deviations from Mean

| Month | EB | HE | EB - Mean EB | HE - Mean HE | (EB - Mean EB) * (HE - Mean


HE) | (EB - Mean EB)² | (HE - Mean HE)² |
|-----------|-----|-----|--------------|---------------|---------------------------
-------|------------------|------------------|
| January | 100 | 800 | -25.42 | -116.67 | 2,968.75
| 645.5364 | 13,606.7889 |
| February | 110 | 820 | -15.42 | -96.67 | 1,491.25
| 237.0564 | 9,350.0889 |
| March | 95 | 750 | -30.42 | -166.67 | 5,080.00
| 925.0564 | 27,777.0889 |
| April | 105 | 780 | -20.42 | -136.67 | 2,788.75
| 416.2564 | 18,688.0889 |
| May | 120 | 900 | -5.42 | -16.67 | 90.25
| 29.3764 | 277.0889 |
| June | 130 | 950 | 4.58 | 33.33 | 152.25
| 20.9764 | 1,111.0889 |
| July | 140 | 1000| 14.58 | 83.33 | 1,215.25
| 212.7364 | 6,944.0889 |
| August | 115 | 850 | -10.42 | -66.67 | 694.25
| 108.5764 | 4,444.0889 |
| September | 125 | 890 | -0.42 | -26.67 | 11.25
| 0.1764 | 711.0889 |
| October | 135 | 940 | 9.58 | 23.33 | 223.25
| 91.6164 | 544.0889 |
| November | 145 | 1100| 19.58 | 183.33 | 3,590.25
| 383.7764 | 33,611.0889 |
| December | 150 | 1200| 24.58 | 283.33 | 6,964.25
| 603.3364 | 80,088.0889 |

### Step 3: Sum Values

- **Sum of Products (SP)**:


\[
SP = \sum (EB - \text{Mean EB}) \times (HE - \text{Mean HE}) = 2,968.75 +
1,491.25 + 5,080 + 2,788.75 + 90.25 + 152.25 + 1,215.25 + 694.25 + 11.25 + 223.25 +
3,590.25 + 6,964.25 = 25,530.00
\]

- **Sum of Squares of EB (SSEB)**:


\[
SSEB = \sum (EB - \text{Mean EB})^2 = 645.5364 + 237.0564 + 925.0564 + 416.2564 +
29.3764 + 20.9764 + 212.7364 + 108.5764 + 0.1764 + 91.6164 + 383.7764 + 603.3364 =
3,824.76
\]

- **Sum of Squares of HE (SHEE)**:


\[
SHEE = \sum (HE - \text{Mean HE})^2 = 13,606.7889 + 9,350.0889 + 27,777.0889 +
18,688.0889 + 277.0889 + 1,111.0889 + 6,944.0889 + 4,444.0889 + 711.0889 + 544.0889
+ 33,611.0889 + 80,088.0889 = 4,045,799.00
\]

### Step 4: Calculate Correlation Coefficient (r)

Using the formula:


\[
r = \frac{SP}{\sqrt{SSEB \times SHEE}}
\]
Substituting the sums:
\[
r = \frac{25,530.00}{\sqrt{3,824.76 \times 4,045,799.00}} \approx \frac{25,530.00}
{\sqrt{15,473,502,000}} \approx \frac{25,530.00}{123,051.44} \approx 0.207
\]

### Conclusion

The correlation coefficient \( r \approx 0.207 \) indicates a weak positive


correlation between monthly electricity bills and home expenses based on this
hypothetical dataset.

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