1 Five salesmen from a certain firm were selected at random for a survey. For each salesman, the annual income, \(x\) thousand pounds, and the distance driven last year, \(y\) thousand miles, were recorded. The results were summarised as follows.
$$n = 5 \quad \Sigma x = 251 \quad \Sigma x ^ { 2 } = 14323 \quad \Sigma y = 65 \quad \Sigma y ^ { 2 } = 855 \quad \Sigma x y = 3247$$
- (a) Show that the product moment correlation coefficient, \(r\), between \(x\) and \(y\) is - 0.122 , correct to 3 significant figures.
(b) State what this value of \(r\) shows about the relationship between annual income and distance driven last year for these five salesmen.
(c) It was decided to recalculate \(r\) with the distances measured in kilometres instead of miles. State what effect, if any, this would have on the value of \(r\). - Another salesman from the firm is selected at random. His annual income is known to be \(\pounds 52000\), but the distance that he drove last year is unknown. In order to estimate this distance, a regression line based on the above data is used. Comment on the reliability of such an estimate.