1. Correlation coefficient with small integer pairs
Problem
Calculate the mean of each variable by summing all values and dividing by .
Subtract the mean from each observation to find deviations from the center.
Multiply corresponding deviations pair by pair: , , ; then sum these products.
Calculate the sample variance of by summing squared deviations and dividing by , then take the square root.
Calculate the sample variance of the same way.
Plug all values into the correlation formula; indicates perfect positive linear association.
Answer:
This example shows a perfect linear relationship: as increases by 1 each time, also increases by exactly 1. The correlation coefficient captures this perfect association with , the maximum possible value.