MTH410 Colorado State University Sample Correlation Coefficient Paper

The research firm LL Research collected data from 200 client businesses. They want to determine how the businesses compare among four variables:

2015 Profit in millions of dollars
2016 Profit in millions of dollars
2015-2016 Two-Year Change in Daily Average Customer Visits

Two-Year Average Number of Employees

Data collected for the sample of 200 businesses is contained in the file named Businesses, linked at the bottom of the page. Use all 200 data points.

Managerial Report
Prepare a report (see Module folder) using the numerical methods of descriptive statistics presented in this module to learn how each of the variables contributes to the success of a client business. Be sure to include the following three items in your report.

  1. Find descriptive sample statistics (mean, median, two quartiles Q1 and Q3, minimum, maximum, range, sample standard deviation, and coefficient of variation) for each of the four variables along with an explanation of what the descriptive statistics tell us about the client businesses.
  2. Compute the percent change in profit from 2015 to 2016 for each business. Then use the z-score to determine which businesses were outliers with respect to percent change in profit.
  3. Compute the sample correlation coefficient, showing the relationship between percent change in profit and each of the other two variables (2015-2016 Two-Year Change in Daily Average Customer Visits and Two-Year Average Number of Employees). Explain what the correlation coefficients tell us about the three pairs of relationships. Use tables, charts, or graphs to support your conclusions.

Requirements:

  1. Paper must be written in third person.
  2. Your paper should be four to five pages in length (counting the title page and references page) and cite and integrate at least one credible outside source.
  3. Include a title page, introduction, body, conclusion, and a reference page.
  4. The introduction should describe or summarize the topic or problem. It might discuss the importance of the topic or how it affects you or society as a whole, or it might discuss or describe the unique terminology associated with the topic.
  5. The body of your paper should answer the questions posed in the problem. Explain how you approached and answered the question or solved the problem, and, for each question, show all steps involved. Be sure this is in paragraph format, not numbered answers like a homework assignment.
  6. The conclusion should summarize your thoughts about what you have determined from the data and your analysis, often with a broader personal or societal perspective in mind. Nothing new should be introduced in the conclusion that was not previously discussed in the body paragraphs.
  7. Include any tables of data or calculations, calculated values, and/or graphs associated with this problem in the body of your assignment.
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