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12.

5 The National Safety Council released the following data on the incidence rates for fatal or lost-worktime
injuries per 100 employees for several industries in three recent years.

Industry Year 1 Year 2 Year 3


Textile 0.46 0.48 0.69
Chemical 0.52 0.62 0.63
Communication 0.9 0.72 0.81
Machinery 1.5 1.74 2.1
Services 2.89 2.03 2.46
Nonferrous metals1.8 1.92 2
Food 3.29 3.18 3.17
Government 5.73 4.43 4

Compute r for each pair of years and determine which years are most highly correlated.

SOLUTION

Correlation between Year 1 and Year 2:

Industry Year 1 (x) Year 2 (y) x-x‾ y-y‾ (x-x‾)(y-y‾) (x-x‾)^2 (y-y‾)^2
Textile 0.46 0.48 -1.67625 -1.41 2.363513 2.80981 1.9881
Chemical 0.52 0.62 -1.61625 -1.27 2.052638 2.61226 1.6129
Communication 0.9 0.72 -1.23625 -1.17 1.446413 1.52831 1.3689
Machinery 1.5 1.74 -0.63625 -0.15 0.095438 0.40481 0.0225
Services 2.89 2.03 0.75375 0.14 0.105525 0.56814 0.0196
Nonferrous metals1.8 1.92 -0.33625 0.03 -0.010088 0.11306 0.0009
Food 3.29 3.18 1.15375 1.29 1.488338 1.33114 1.6641
Government 5.73 4.43 3.59375 2.54 9.128125 12.91504 6.4516
2.13625 1.89 0 0 16.6699 22.28259 13.1286
###
17.10378

(𝛴(𝑥−𝑥‾)(𝑦−𝑦‾)
r= )/( √𝛴(𝑥−𝑥‾)²(𝑦−𝑦‾)²)

r= 0.97463

So, the correlation between year 1 and year 2 is 0.975.


s for fatal or lost-worktime

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