1. Using the concepts of correlation, scatter plots, and best-fit line, describe
ID: 159082 • Letter: 1
Question
1. Using the concepts of correlation, scatter plots, and best-fit line, describe the relationship between the two variables studied in the each of the following datasets:
a) In the book, Physical Geography, A.M King describes the relationship between Diameter of sand granules found on a beach and the slope of the beach. We provide a dataset where X = median diameter of granules of sand in millimeters, and Y = gradient of beach slope in degrees. The data is for naturally occurring ocean beaches.
b) The S&P 500 (created in 1957) is a stock index published by Standard & Poor's. It is comprised of 500 U.S. stocks that are supposed to be representative of the overall stock market. The information about S&P 500 performance is widely available (Yahoo Finance). Please select a company of your choice and download their stock data. Compare the stock to the S&P 500. How would you leverage this information to improve the performance of a financial portfolio?
c) In the book, The Song of Insects, Dr.G.W. Pierce describes the relationship between striped ground cricket chirps and temperature of the environment in which the crickets exist. We provide a dataset where X = chirps/sec for the striped ground cricket and Y = temperature in degrees Fahrenheit.
for the value 94000015 72.199m tandand deviation 120304155 8351437 9746514 6200000 17 7.20000076 correlation of chirps/ec and temp in fahrenhelt 197919924Explanation / Answer
The data given in the graph shows maximum point on the line which shoes that the data is regressed and have high correlation coefficient. The R vaklue which is approximately 0.95 shows that the data is highly co related and the values depend on each other
On the other hand a high standard deviation in S&P values shows that the data has high vairance which should not be there . So correction in that field can be done otherwise the chances of rejecting the model will increase
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