Calculate the covariance between profits and market capitalization and what does the covariance indicate about the relationship between profits and market capitalization? (positive or negative).
2. Calculate the correlation coefficient between profits and market capitalization and what does this indicate about the relationship between profits and market capitalization? (strong/weak/non-linear relationship) .
Company Profits ([tex] millions) Market Capitalization ([/tex] millions)
Alliant Techsystems 313.20 1891.90
Amazon.com 631.00 81458.60
AmerisourceBergen 706.60 10087.60
Avis Budget Group -29.00 1175.80
Boeing 4018.00 55188.80
Cardinal Health 959.00 14115.20
Cisco Systems 6490.00 97376.20
Coca-Cola 8572.00 157130.50
ConocoPhillips 12436.00 95251.90
Costco Wholesale 1462.00 36461.20
CVS Caremark 3461.00 53575.70
Delta Air Lines 854.00 7082.10
Fidelity National Financial 369.50 3461.40
FMC Technologies 399.80 12520.30
Foot Locker 278.00 3547.60
General Motors 9190.00 32382.40
Harley-Davidson 599.10 8925.30
HCA Holdings 2465.00 9550.20
Kraft Foods 3527.00 65917.40
Kroger 602.00 13819.50
Lockheed Martin 2655.00 26651.10
Medco Health Solutions 1455.70 21865.90
Owens Corning 276.00 3417.80
Pitney Bowes 617.50 3681.20
Procter & Gamble 11797.00 182109.90
Ralph Lauren 567.60 12522.80
Rockwell Automation 697.80 10514.80
Rockwell Collins 634.00 8560.50
United Stationers 109.00 1381.60
United Technologies 4979.00 66606.50
UnitedHealth Group 5142.00 53469.40
