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Question: The director of graduate admissions at a local university is analyzing the relationship between scores on the Graduate Record Examination (GRE) and subsequent performance in graduate school, as measured by a student's grade point average (GPA). She uses a sample of 10 students who graduated within the past five years.

a. Calculate and interpret the covariance.

b. Calculate and interpret the coefficient of correlation. Does an applicant's GRE score seem to be a good indicator of subsequent performance in graduate school?

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