Extra Activity 3

VISUALIZATION ON THE ABOVE SCATTER PLOT GRAPH:

Based on the scatter plot, there seems to be a weak positive correlation between the Annual Salary and Bonus% variables. As the Annual Salary increases, there is a slight tendency for the Bonus% to increase as well, but it’s not a strong or consistent relationship.

It’s important to note that a scatter plot is a type of graph that is used to display the relationship between two continuous variables. The x-axis represents the Annual Salary ranging from $40,000 to $80,000 and the y-axis represents the Bonus% ranging from 0% to 40%. The blue dots scattered throughout the graph indicate individual data points. Most of the data points are clustered around the $60,000 mark on the x-axis.

Scatter plots are useful for identifying patterns and relationships between variables. They can help us understand how two variables are related and whether there is a correlation between them. However, it’s important to remember that correlation does not imply causation. Just because two variables are correlated does not mean that one causes the other.

4. Covariance and Correlation between the above selected two variables and relationship between the variables based on the obtained values. 

• To calculate the covariance and correlation between Annual Salary and Bonus %, we need to first calculate the mean of both variables. The mean of Annual Salary is $1,16,726.22 and the mean of Bonus % is 9.17%.

• The covariance between Annual Salary and Bonus % is $1,05,073.67. The covariance is a measure of how much two variables change together 1. A positive covariance indicates that the two variables are positively related, while a negative covariance indicates that the two variables are negatively related 1. In this case, the positive covariance suggests that there is a positive relationship between Annual Salary and Bonus %.

• The correlation coefficient between Annual Salary and Bonus % is 0.63. The correlation coefficient is a measure of the strength and direction of the linear relationship between two variables 1. The correlation coefficient ranges from -1 to 1, where -1 indicates a perfect negative correlation, 0 indicates no correlation, and 1 indicates a perfect positive correlation 1. In this case, the positive correlation coefficient suggests that there is a positive relationship between Annual Salary and Bonus %, but the relationship is not very strong 1.

Relationship between the variables based on the obtained values:

Based on the obtained values, we can conclude that there is a positive relationship between Annual Salary and Bonus %, but the relationship is not very strong. This means that as the Annual Salary increases, the Bonus % also tends to increase, but the increase is not very significant. However, it is important to note that correlation does not imply causation, and there may be other factors that influence the relationship between Annual Salary and Bonus %.