The accompanying data table shows the level of social media networking (measured

Question

The accompanying data table shows the level of social media networking (measured as the percent of individuals polled who use social networking sites) and the GDP at purchasing power parity (PPP) per capita for each of 24 selected countries. a. Compute the covariance. b. Compute the coefficient of correlation. C. Based on parts (a) and (b), what conclusions can be reached about the relationship between the GDP and social media use? a. The covariance is b. r = c. Choose the correct answer below. A. There is a weak positive relationship between a country's GDP and its social media usage. B. There is a strong negative relationship between a country's GDP and its social media usage. C. There is a strong positive relationship between a country's GDP and its social media usage. D. There is no clear relationship between a country's GDP and its social media usage.

Explanation / Answer

a) =COVARIANCE.S(A4:A27,B4:B27)        <- Excel function

-6754

b) Correlation = covariance(X,Y)/[SD(X)*SD(Y)] = -6754.18/[5615.311*9.0785] = -0.132

c) There is no clear relationship between a country's GDP and its social media usage

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