Correlation

As they have already mentioned 74 and 76 are subtracted for reducing the values to compute them easily . Look at the figures in 'U' & 'V' blocks they are smaller than the initial ones . And regression coefficient 'r' doesnot change with change of origin ( addition or subtraction).

Jahnavi Jaijapuram

CA Foundation

★ 6K+

12-Nov-22 22:49

Here they have computed the mean which are nothing but 74 and 76 for x and y series . This is just for simplification.

Jaswanth P

CA Inter

★ 3K+

12-Nov-22 23:40

How that 74 and 76 are computed

Thread Starter

Lathika

CA Inter

★ 6K+

13-Nov-22 08:02

By finding the arithmetic means for x and y respectively

Jaswanth P

CA Inter

★ 3K+

13-Nov-22 08:10

595÷8= 74.375 this is the mean computation value for both. I don't know to calculate 76 . Pls workout it and post

Thread Starter

Lathika

CA Inter

★ 6K+

13-Nov-22 08:22

Its an estimate. You could use any other number. Say 75. You will get the same outcome. It is called shift of origin.

CA Suraj Lakhotia

Admin

17-Nov-22 10:29