Calculating a Correlation Coefficient

Assignment 7

A large industrial plant has seven divisions that do the same type of work. A safety inspector visits each division of 20 workers quarterly. The number X of workhours devoted to safety training and the number Y of work hours lost due to industry-related accidents are recorded for each separate division below. Use an Excel to answer the following questions.

  1. Plot a scatter diagram for these pairs and comment on the relation between X and Y (use MS excel).
  2. Calculate a correlation coefficient and discuss the direction and strength of linear association between X and Y.
  3. Discuss if the estimated correlation coefficient can be interpreted as an indication of causal effect running from X to Y or from Y to X.

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