[tex]\begin{tabular}{|l|l|l|}
\hline \multicolumn{1}{|c|}{ Company } & \multicolumn{1}{|c|}{ Profits (\$ millions) } & Mapitalization (\$ millions) \\
\hline Alliant Techsystems & [tex]313.20[/tex] & [tex]1891.90[/tex] \\
\hline Amazon.com & [tex]631.00[/tex] & [tex]81458.60[/tex] \\
\hline AmerisourceBergen & [tex]706.60[/tex] & [tex]10087.60[/tex] \\
\hline Avis Budget Group & [tex]-29.00[/tex] & [tex]1175.80[/tex] \\
\hline Boeing & [tex]4018.00[/tex] & [tex]55188.80[/tex] \\
\hline Cardinal Health & [tex]959.00[/tex] & [tex]14115.20[/tex] \\
\hline Cisco Systems & [tex]6490.00[/tex] & [tex]97376.20[/tex] \\
\hline Coca-Cola & [tex]8572.00[/tex] & [tex]157130.50[/tex] \\
\hline
\end{tabular}[/tex]
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) .
