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A researcher was interested lowering the high school dropout level in his county. He measured the reading level of students entering middle school (based on a standard test) and their academic performance at the end of 10th grade (as measured by overall GPA).
Use the following data to:
A. Compute a correlation coefficient using Excel.
B. Create a scatterplot using Excel.
C. Determine the coefficient of determination. Explain what it tells you.
D. Explain in words what the correlation coefficient tells you about the relationship between reading level when entering middle school and 10th grade academic performance as measured by GPA.
E. What does it not tell you?
Student Reading Level Score GPA
1 100 3.0
2 110 2.95
3 80 2.00
4 75 2.10
5 91 2.00
6 124 3.80
7 95 2.40
8 82 3.00
9 104 3.10
10 95 2.20
11 88 2.24
12 95 3.00
13 107 3.45
14 112 3.11
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A. Compute descriptive statistics for each stock and the S&P 500. Comment on your results. Which stocks are most volatile?
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