Calculate coefficient of of correlation from the following data and interpret the result.
Let X and Y denote number of years of schooling of farmers and annual yielding per acre respectively.
Calculation of Coefficient of Correlation
Here, N= 7, ∑X=42,∑X2=112,∑y=49,∑y2=38 and ∑xy=42
Now, ¯X=∑XN=427=6 and ¯Y=∑YN=497=7
It shows a moderate degree of positive correlation between number of years of schooling of farmers and annual yield per acre.