Sharp Cookie

Sharp Cookie

1. Sharp Cookie, PMP, has been offered a fat contract to help an investment bank, Sackem & Stackem, LLC, to determine if the company stock price has anything to do with sacking employees. Cookie, keen to show off her statistical analysis saavy immediately sets to work gathering data over the past 5 years. The data she gathers is as follows:

Year    Stock Price (Y)           # of employees sacked (X)
1          22.45                           120
2          24.50                           105
3          28.50                           150
4          36.50                           220
5          42.25                           325

a. Calculate the mean averages of the coordinates

b. Determine the covariance

c. Determine the correlation coefficient

d. Using Excel calculate R Square (% of confidence) and the Y Intercepte. Plot the points on a graph and draw the regression line

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