Correlation Analysis Question wrong, where, function, 1060

svgleeson

Hi All,

I need some help understanding where I am going wrong.

The CFA Level II Quant Section (Page 285) has a data set from the IMF. It uses it to illustrate the Sample Covarience and Standard Deviation. The Sample Data is thus:

X Y
.1166 .0676
.0915 .0519
.1060 .0815
.0575 .0339
.1258 .0758
.0634 .0509

They are calculating the sample corelation coefficient as .8702

When I input the data into the BAII Plus Professional, the STAT function shows r as equaling .8704 (rounded).

WHAT ACCOUNTS FOR THE VALUATION DIFFERENCE BETWEEN THE CFAI AND OUR CALCUATORS?

Analyze_This

It's rounding error. Don't waste your time over 2 pips.

RMontgomery

BA 2 PLUS USES SAMPLE CORRELATION .

AS Andrew3032 SAID , i think they used excel

becuase with .8702 covariance would be .00043677

as well in calculator is .0043688

ryanlb

Okay. Thanks everyone. Best to be precise with this.