Verbal Math

510 690
470 630 Point of Averages SD Line
470 560 Average x 512 SDx 89
440 710 Average y 595 SDy 87
660 730 r 0.55
600 650
450 510
500 420
580 610
400 500
A Scatter Diagram
490 650 750
490 570
340 460
320 380 650
560 550
Math

400 470
450 610 550
510 710
730 680
450
510 560
570 690
690 770 350
510 620
480 560
590 660 250
500 650 250 350 450 Verbal 550 650 750
660 660
360 460
470 640
540 560
560 640
440 480
620 610
560 700
590 740
450 500
400 540
470 550
400 560
500 650
490 530
560 650
540 610
650 520
520 680
450 500
590 640
650 760
500 600
370 610
520 670
480 640
640 720
560 460
450 460
540 640
400 550
480 560
700 710
490 540
420 440
580 730
500 530
610 700
420 580
460 620
500 570
470 620
580 740
380 560
690 540
440 420
600 650
660 640
490 600
560 590
460 750
620 690
590 640
550 560
490 640
520 650
450 490
620 730
620 690
490 610
400 500
590 640
420 460
540 500
300 610
600 710
360 490
440 460
370 370
440 680
480 490
490 460

A Scatter Diagram 3
750
750

650
650
th
400 550
540 640 A Scatter Diagram 3
440 570 750
750
500 600
500 740
650
650
480 580

Math
470 690

Math
460 500 550
550
580 570
510 560
540 630 450
450
540 500
440 540
350
540 560 350
500 710
480 660 250
530 550 250250 350 450 550 650 750
Verbal
Verbal
500 620 250 350 450 550 650 750
360 740
560 570
490 560
510 730
430 510
650 680
680 720
480 570
480 620
510 530
390 450
360 520
660 780
650 700
580 610
660 750
630 600
490 630
440 560
430 600
480 610
580 720
530 700
630 650
520 570
470 500
570 690
410 570
400 530
480 560
430 500
440 590
600 690
390 470
570 450
460 520
500 580
420 560
640 660
440 620
520 720
460 480
510 560
490 550
350 510
630 650
400 560
470 500
630 760
440 610
540 650
570 600
510 580
590 630
520 440
400 640
410 510
440 480
580 580
440 480
580 680
440 540
530 680
450 570
440 510
720 580
510 590
380 480
540 630
500 630
490 610
460 560
670 600
620 570
480 570
420 560
480 580
540 700
500 560
560 800
420 660
490 490

A Scatter Diagram
750
3

650
th
420 560
420 420 A Scatter Diagram 3
580 740 750
580 620
470 610
650
540 500

Math
450 500
430 470 550
520 690
590 700
540 600 450
540 450
530 690
580 710 350
570 670
600 650
250
700 730 Verbal 550
250 350 450 650 750
440 670
490 470
530 480
500 600
470 560
380 420
360 500
480 500
600 680
430 510
500 560
540 560
470 560
470 470
400 630
620 580
470 480
390 520
530 530
460 670
600 700
450 350
560 580
500 420
660 730
440 650
520 580
450 660
490 610
490 540
510 480
620 690
460 570
490 430
660 590
550 780
410 590
470 460
680 760
560 570
360 440
620 520
500 560
440 660
580 580
360 550
480 480
650 500
590 730
430 600
400 520
400 570
550 690
540 620
600 670
560 660
350 600
440 600
430 380
450 580
540 530
600 590
450 550
670 700
400 430
540 650
520 520
520 480
560 600
440 530
470 620
450 580
560 620
660 730
580 730
500 560
550 620
560 560
780 800
670 670
510 600
470 530
420 550
520 660
480 650
670 670
530 540
690 670
540 740
580 590
470 610
600 650
580 660
560 620
620 740
380 560
430 390
320 450
480 500
480 660
460 570
570 660
580 590
550 600
610 740
450 600
520 590
550 690
660 690
570 570
630 690
450 540
480 650
400 600
480 560
500 560
420 560
580 710
720 700
400 490
420 540
610 730
470 550
390 530
340 650
400 530
500 570
340 580
430 550
380 530
570 680
600 500
420 540
550 720
600 700
420 460
560 670
500 600
720 760
490 530
600 580
430 430
540 730
400 690
500 650
370 580
560 650
600 620
640 550
640 640
530 640
530 610
500 720
500 620
680 680
560 640
560 500
500 570
470 520
600 760
740 780
360 660
660 800
560 690
580 650
510 660
600 670
360 480
510 560
720 730
460 530
500 600
460 620
470 560
400 460
440 460
600 670
510 740
500 650
610 570
680 740
740 530
550 580
450 430
400 540
620 650
540 600
570 600
450 650
430 480
460 650
500 480
540 650
540 350
540 640
580 710
570 680
370 490
520 560
590 680
540 670
640 630
490 650
580 560
460 500
600 660
380 590
660 540
670 680
580 650
560 560
580 730
440 600
450 530
430 380
580 560
660 600
490 500
480 470
470 500
580 570
490 480
380 520
640 730
510 520
430 480
590 620
490 660
430 550
450 590
660 720
480 660
650 540
540 690
600 690
460 570
570 690
530 660
380 560
420 560
520 610
500 610
470 680
700 660
540 600
500 610
510 640
630 750
440 600
490 610
510 510
590 620
620 700
500 560
730 610
560 580
580 570
420 500
340 500
350 590
370 460
620 700
460 530
720 630
400 580
440 560
530 760
510 540
380 560
440 540
590 630
480 670
400 620
400 500
470 570
510 640
440 510
440 560
400 470
590 680
520 680
480 540
330 560
540 530
480 430
640 650
510 660
650 630
550 590
350 700
400 470
350 530
390 590
520 600 Chart Title
500 570 900
410 680
800
410 440
490 610 700
430 580
600
450 620
430 490 500
590 670
400
430 530
560 640 300
550 450
200
400 550
660 730 100
520 560 0
530 610 200 300 400 500 6
680 710
350 480
560 670
 512 350 512 595
512 800 333.66 421
300 595 689.83 769
780 595

am

650 750
ram 3
ram 3

650 750
650 750
ram
3
ram 3

650 750
 Chart Title

300 400 500 600 700 800 900

 Perfect Positive Correlation = 1
Measured Shoe Size 18
Person Left Shoes Right Shoes 16

Right Shoes
1 6 6
14
2 10 10
3 12 12 12
4 3 3 10
5 8 8
6 9 9 8

7 5 5 6
8 4 4
4
9 16 16
10 11 11 2

0
Correlation Coefficient 1 2 4 6 8 Left 10
Shoes 12 14 1

Perfect Negative Correlation = -1

20
Hours
Person Sleeping Hours Awake 19
1 8 16
2 6 18 18
3 7.25 16.75
17
4 8.5 15.5
5 5 19 16
6 7.5 16.5
7 6.75 17.25 15
8 7.75 16.25
9 7.1 16.9 14

10 6.5 17.5 13

-1 12
Correlation Coefficient
11

10
4.5 5 5.5 6 6.5 7 7.5 8 8.5
 8 Left 10
Shoes 12 14 16 18

Chart Title
20

19

18

17

16

15

14
4 4.5 5 5.5 6 6.5 7 7.5 8 8.5 9

6 6.5 7 7.5 8 8.5 9

8 8.5 9
Demonstrating Correlation 2
Parameters
r 0
Avg Y 20 80
SD Y 20
Descriptive Statistics 60
X Y
Average 24.5 20 40
SD 14.4 20
r 0.000 20 1
0
X Y
0 10 20 30 40 50 60
0 39.41 -20
1 23.83
2 8.14 -40
3 0.06
4 4.01
5 47.98
6 14.98
7 24.21
8 7.83
9 24.33
10 -5.99
Costa Rican Consumption and Investment Shares of GDP.
Percent
Year C Share I Share
1950 70.7 11.8
1951 71.3 12.6 25
1952 71.9 14.4
1953 76.3 13.5
1954 76.5 12.2 20
1955 75.2 12.6
1956 73.8 13.9 15
1957 73.3 14.6
1958 74.2 11.5
1959 71.3 14.2 10
1960 71.7 12.6
1961 70.4 12.8 5
1962 69.2 14.3
1963 68.1 15.7
1964 71.4 11.6 0
60 62 64 66 68 70 72 74 76 78
1965 67.9 17.6
1966 70.1 13.7
1967 70.4 14
1968 70.8 13
1969 69.9 14.2
1970 69.6 14.8
1971 66.8 17.4
1972 66.8 15.1
1973 65.1 16.8 22
1974 64.5 17.3
1975 64.6 15.4
20
1976 62.7 18.5
1977 63.5 20.5
1978 65.1 19.2 18
1979 63.5 20
1980 61.8 21.4
1981 63 14 16
1982 62.6 11.3
1983 62.9 14.6 14
1984 63 15.1
1985 63.8 15.9
1986 62.6 19.7 12
1987 63.2 19.5
1988 63.6 17.7
10
1989 63.8 18.4 55 60 65
1990 64.3 18.6
1991 64.9 15.9
1992 64.9 18.9
72 74 76 78

65 70 75 80
 r 0.87

Velocity from 1959 to 1996

8.00

7.00

6.00

5.00

4.00

3.00

2.00

1.00

0.00
1955 1960 1965 1970 1975 1980 1985 1990 1995 2000
Answer:
The correlation coefficient is a poor descriptor of the data.
The picture tells you much more about what's happened to velocity
than a single summary statistic.
Reporting r without the graph would seriously mislead your audience.

Lesson:
Do not report r for the entire series because it is misleading.
Do present the scatter plot.
 Table B-69.--Money stock, liquid assets, and debt measures, 1959-97
[Averages of daily figures, except debt; billions of dollars, seasonally adjusted]
_________________________ _ __________ _ __________ _ __________ _ __________ _ __________ _ ________ _ ________ _ ________ _ ________ _

M1 M2 M3 L Debt \1\ Percent change from year or 6 months

__________ __________ __________ __________ __________ earlier \2\
________ _ ________ _ ________ _ ________
Sum of M1 plus M2 plus Debt of
currency, retail large time domestic
demand MMMF deposits, nonfinan-
Year and month deposits, balances, RPs, Euro- M3 plus cial
travelers savings dollars, other sectors
checks, deposits and liquid (monthly M1 M2 M3 Debt
and other (including instituti- assets average of
checkable MMDAs), on- only adjacent
deposits and small MMMF month-end
(OCDs) time balances levels)
deposits
_________________________ _ __________ _ __________ _ __________ _ __________ _ __________ _ ________ _ ________ _ ________ _ ________ _
December:
1959............................................... 140.0 297.8 299.7 388.6 687.6 ................ ................ ................ 7.6
1960............................................... 140.7 312.4 315.2 403.5 723.0 0.5 4.9 5.2 5.1
1961............................................... 145.2 335.5 340.8 430.6 765.7 3.2 7.4 8.1 5.9
1962............................................... 147.8 362.7 371.3 465.9 818.4 1.8 8.1 8.9 6.9
1963............................................... 153.3 393.2 405.9 503.6 873.3 3.7 8.4 9.3 6.7
1964............................................... 160.3 424.7 442.4 540.3 936.8 4.6 8.0 9.0 7.3
1965............................................... 167.8 459.2 482.1 584.3 1,003.7 4.7 8.1 9.0 7.1
1966............................................... 172.0 480.2 505.4 615.1 1,070.9 2.5 4.6 4.8 6.7
1967............................................... 183.3 524.8 557.9 667.3 1,145.2 6.6 9.3 10.4 6.9
1968............................................... 197.4 566.8 607.2 729.9 1,236.8 7.7 8.0 8.8 8.0
1969............................................... 203.9 587.9 615.9 764.4 1,326.7 3.3 3.7 1.4 7.3
1970............................................... 214.4 626.5 677.1 814.8 1,416.1 5.1 6.6 9.9 6.7
1971............................................... 228.3 710.2 776.0 902.6 1,549.6 6.5 13.4 14.6 9.4
1972............................................... 249.2 802.3 886.0 1,022.8 1,705.7 9.2 13.0 14.2 10.1
1973............................................... 262.8 855.5 985.0 1,141.5 1,890.8 5.5 6.6 11.2 10.9
1974............................................... 274.2 902.4 1,070.0 1,248.5 2,063.5 4.3 5.5 8.6 9.1
1975............................................... 287.4 1,017.0 1,172.0 1,366.5 2,251.2 4.8 12.7 9.5 9.1
1976............................................... 306.3 1,152.7 1,312.0 1,516.6 2,495.5 6.6 13.3 11.9 10.9
1977............................................... 331.2 1,271.5 1,472.5 1,705.3 2,811.5 8.1 10.3 12.2 12.7
1978............................................... 358.4 1,368.0 1,646.8 1,911.3 3,201.2 8.2 7.6 11.8 13.9
1979............................................... 382.9 1,475.7 1,806.6 2,121.2 3,590.0 6.8 7.9 9.7 12.1
1980............................................... 408.9 1,601.1 1,992.2 2,330.0 3,932.0 6.8 8.5 10.3 9.5
1981............................................... 436.8 1,756.2 2,240.9 2,601.8 4,329.0 6.8 9.7 12.5 10.1
1982............................................... 474.6 1,910.8 2,442.3 2,845.9 4,758.0 8.7 8.8 9.0 9.9
1983............................................... 521.2 2,127.7 2,684.8 3,150.6 5,324.9 9.8 11.4 9.9 11.9
 1984............................................... 552.2 2,312.2 2,979.8 3,518.6 6,106.8 5.9 8.7 11.0 14.7
1985............................................... 619.9 2,497.6 3,198.3 3,827.0 7,024.8 12.3 8.0 7.3 15.0
1986............................................... 724.4 2,733.9 3,486.4 4,122.3 7,905.0 16.9 9.5 9.0 12.5
1987............................................... 749.7 2,832.7 3,672.5 4,339.9 8,659.9 3.5 3.6 5.3 9.5
1988............................................... 787.0 2,996.3 3,912.9 4,663.5 9,429.2 5.0 5.8 6.5 8.9
1989............................................... 794.2 3,160.9 4,065.9 4,892.8 10,150.8 0.9 5.5 3.9 7.7
1990............................................... 825.8 3,279.5 4,125.9 4,976.6 10,825.4 4.0 3.8 1.5 6.6
1991............................................... 897.3 3,379.6 4,180.4 5,006.2 11,301.9 8.7 3.1 1.3 4.4
1992............................................... 1,025.0 3,434.0 4,190.4 5,078.0 11,842.0 14.2 1.6 0.2 4.8
1993............................................... 1,129.8 3,486.6 4,254.4 5,167.8 12,462.1 10.2 1.5 1.5 5.2
1994............................................... 1,150.7 3,502.1 4,327.3 5,308.4 13,078.0 1.8 0.4 1.7 4.9
1995............................................... 1,129.0 3,655.0 4,592.5 5,697.6 13,773.3 (1.9) 4.4 6.1 5.3
1996............................................... 1,081.1 3,821.8 4,920.5 6,071.7 14,496.6 (4.2) 4.6 7.1 5.3
1997 p............................................. 1,068.7 4,019.3 5,333.0 .................... .................... (1.1) 5.2 8.4 ................
1996: Jan........................................... 1,122.2 3,669.9 4,620.1 5,720.8 13,822.8 (4.0) 4.8 5.6 4.4
Feb............................................ 1,119.8 3,685.0 4,652.9 5,739.5 13,895.8 (4.2) 4.5 5.6 4.9
Mar............................................ 1,126.2 3,714.0 4,689.4 5,789.7 13,972.0 (2.7) 5.2 6.2 5.3
Apr............................................ 1,123.6 3,724.5 4,706.3 5,826.0 14,035.3 (2.1) 5.2 6.2 5.3
May............................................ 1,117.1 3,725.4 4,728.9 5,846.5 14,088.1 (2.8) 4.7 6.6 5.2
June........................................... 1,115.6 3,741.6 4,751.4 5,889.6 14,147.7 (2.4) 4.7 6.9 5.4

July............................................ 1,108.9 3,749.1 4,769.4 5,914.2 14,219.7 (2.4) 4.3 6.5 5.7
Aug............................................ 1,099.9 3,759.7 4,787.7 5,942.1 14,273.7 (3.6) 4.1 5.8 5.4
Sept........................................... 1,093.3 3,769.7 4,816.5 5,981.5 14,322.1 (5.8) 3.0 5.4 5.0
Oct............................................ 1,080.3 3,780.1 4,850.2 6,005.7 14,383.7 (7.7) 3.0 6.1 5.0
Nov............................................ 1,080.1 3,799.8 4,877.6 6,040.0 14,446.6 (6.6) 4.0 6.3 5.1
Dec............................................ 1,081.1 3,821.8 4,920.5 6,071.7 14,496.6 (6.2) 4.3 7.1 4.9

1997: Jan........................................... 1,079.7 3,836.9 4,943.7 6,087.5 14,538.1 (5.3) 4.7 7.3 4.5
Feb............................................ 1,080.7 3,852.3 4,984.3 6,138.7 14,595.8 (3.5) 4.9 8.2 4.5
Mar............................................ 1,075.4 3,867.9 5,019.0 6,186.5 14,657.5 (3.3) 5.2 8.4 4.7
Apr............................................ 1,065.3 3,885.7 5,058.4 6,243.7 14,728.7 (2.8) 5.6 8.6 4.8
May............................................ 1,062.8 3,883.3 5,063.0 6,263.3 14,775.7 (3.2) 4.4 7.6 4.6
June........................................... 1,063.1 3,896.8 5,080.9 6,287.5 14,805.5 (3.3) 3.9 6.5 4.3

July............................................ 1,062.1 3,907.1 5,121.2 6,318.8 14,860.6 (3.3) 3.7 7.2 4.4
Aug............................................ 1,069.6 3,941.3 5,168.2 6,380.1 149,178 (2.1) 4.6 7.4 4.4
Sept........................................... 1,060.8 3,959.8 5,204.9 6,421.2 14,975.9 (2.7) 4.8 7.4 4.3
Oct............................................ 1,057.4 3,974.9 5,237.1 6,444.7 15,042.5 (1.5) 4.6 7.1 4.3
Nov............................................ 1,064.0 3,997.8 5,285.0 6,507.5 15,107.9 0.2 5.9 8.8 4.5
Dec p.......................................... 1,068.7 4,019.3 5,333.0 .................... .................... 1.1 6.3 9.9 ................
_________________________ _ __________ _ __________ _ __________ _ __________ _ __________ _ ________ _ ________ _ ________ _ ________ _
\1\ Consists of outstanding credit market debt of the U.S. Government, State and local governments, and private nonfinancial
sectors; data derived from flow of funds accounts.
\2\ Annual changes are from December to December; monthly changes are from 6 months earlier at a simple annual rate.
Note.--See Table B-70 for components.
Source: Board of Governors of the Federal Reserve System.
 DPCache_3D Hist
Verbal Math Freq
370 370 1
320 380 1
380 420 1
360 440 1
320 450 1
390 450 1
340 460 1
360 460 1
370 460 1
390 470 1
350 480 1
360 480 1
380 480 1
360 490 1
370 490 1
340 500 1
360 500 1
350 510 1
360 520 1
380 520 1
390 520 1
350 530 1
380 530 1
390 530 1
360 550 1
330 560 1
380 560 4
340 580 1
370 580 1
350 590 1
380 590 1
390 590 1
350 600 1
300 610 1
370 610 1
340 650 1
360 660 1
350 700 1
360 740 1
450 350 1
430 380 2
430 390 1
420 420 1
440 420 1
400 430 1
430 430 1
450 430 1
480 430 1

Page 28
 DPCache_3D Hist
490 430 1
410 440 1
420 440 1
400 460 1
420 460 2
440 460 2
450 460 1
470 460 1
490 460 1
400 470 3
430 470 1
470 470 1
480 470 1
490 470 1
430 480 2
440 480 3
460 480 1
470 480 1
480 480 1
490 480 1
400 490 1
430 490 1
450 490 1
480 490 1
490 490 1
400 500 3
420 500 1
430 500 1
450 500 3
460 500 2
470 500 3
480 500 2
490 500 1
410 510 1
430 510 2
440 510 2
450 510 1
400 520 1
460 520 1
470 520 1
400 530 2
430 530 1
440 530 1
450 530 1
460 530 2
470 530 1
490 530 2
400 540 2
420 540 2

Page 29
 DPCache_3D Hist
440 540 3
450 540 1
480 540 1
490 540 2
400 550 3
420 550 1
430 550 2
450 550 1
470 550 2
490 550 1
400 560 2
420 560 5
440 560 3
460 560 1
470 560 4
480 560 4
490 560 1
400 570 1
410 570 1
440 570 1
450 570 1
460 570 3
470 570 1
480 570 2
490 570 1
400 580 1
420 580 1
430 580 1
450 580 2
480 580 2
410 590 1
440 590 1
450 590 1
400 600 1
430 600 2
440 600 3
450 600 1
490 600 1
440 610 1
450 610 1
470 610 2
480 610 1
490 610 5
400 620 1
440 620 1
450 620 1
460 620 2
470 620 2
480 620 1

Page 30
 DPCache_3D Hist
400 630 1
470 630 1
490 630 1
400 640 1
470 640 1
480 640 1
490 640 1
440 650 1
450 650 1
460 650 1
480 650 2
490 650 2
420 660 1
440 660 1
450 660 1
480 660 3
490 660 1
440 670 1
460 670 1
480 670 1
410 680 1
440 680 1
470 680 1
400 690 1
470 690 1
440 710 1
460 750 1
540 350 1
500 420 2
520 440 1
540 450 1
550 450 1
570 450 1
560 460 1
500 480 1
510 480 1
520 480 1
530 480 1
540 500 3
560 500 1
510 510 1
510 520 1
520 520 1
500 530 1
510 530 1
530 530 1
540 530 2
510 540 1
530 540 1

Page 31
 DPCache_3D Hist
530 550 1
560 550 1
500 560 6
510 560 4
520 560 2
540 560 3
550 560 1
560 560 2
580 560 2
500 570 4
520 570 1
560 570 2
570 570 1
580 570 3
500 580 1
510 580 1
520 580 1
550 580 1
560 580 2
580 580 2
510 590 1
520 590 1
550 590 1
560 590 1
580 590 2
500 600 5
510 600 1
520 600 1
540 600 3
550 600 1
560 600 1
570 600 2
500 610 2
520 610 1
530 610 2
540 610 1
580 610 2
500 620 2
510 620 1
540 620 1
550 620 1
560 620 2
580 620 1
590 620 2
500 630 1
540 630 2
590 630 2
510 640 2
530 640 1

Page 32
 DPCache_3D Hist
540 640 3
560 640 3
590 640 3
500 650 4
520 650 1
540 650 3
560 650 2
580 650 2
510 660 2
520 660 1
530 660 1
560 660 1
570 660 1
580 660 1
590 660 1
520 670 1
540 670 1
560 670 2
570 670 1
590 670 1
520 680 2
530 680 1
570 680 2
580 680 1
590 680 2
510 690 1
520 690 1
530 690 1
540 690 1
550 690 2
560 690 1
570 690 3
530 700 1
540 700 1
560 700 1
590 700 1
500 710 1
510 710 1
580 710 3
500 720 1
520 720 1
550 720 1
580 720 1
510 730 1
540 730 1
580 730 3
590 730 1
500 740 1
510 740 1

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 DPCache_3D Hist
540 740 1
580 740 2
590 740 1
530 760 1
550 780 1
560 800 1
600 500 1
650 500 1
620 520 1
650 520 1
650 540 1
660 540 1
690 540 1
640 550 1
610 570 1
620 570 1
600 580 1
620 580 1
600 590 1
660 590 1
630 600 1
660 600 1
670 600 1
620 610 1
600 620 1
640 630 1
650 630 1
640 640 1
660 640 1
600 650 4
620 650 1
630 650 2
640 650 1
600 660 1
640 660 1
660 660 1
600 670 3
670 670 2
690 670 1
600 680 1
650 680 1
670 680 1
680 680 1
600 690 2
620 690 3
630 690 1
660 690 1
600 700 2
610 700 1

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 DPCache_3D Hist
620 700 2
650 700 1
670 700 1
600 710 1
680 710 1
640 720 1
660 720 1
680 720 1
610 730 1
620 730 1
640 730 1
660 730 4
610 740 1
620 740 1
680 740 1
630 750 1
660 750 1
600 760 1
630 760 1
650 760 1
680 760 1
690 770 1
660 780 1
660 800 1
740 530 1
720 580 1
730 610 1
720 630 1
700 660 1
730 680 1
720 700 1
700 710 1
700 730 1
720 730 1
720 760 1
740 780 1
780 800 1

Page 35