Interpret the value of correlation coefficients and squared correlations.
-A small independent organic food store offers a variety of specialty coffees. To
Determine whether price has an impact on sales, the managers kept track of how many
Pounds of each variety of coffee were sold last month. Based on the summary statistics
Shown below, what percent of the variability in the number of pounds of coffee sold per
Week can be explained by price? $$\begin{array} { | l | l | l | }
\hline \text { Mean } & \$ 8.75 & 54.50 \
\hline \text { Standard Deviation } & \$ 3.63 & 18.33 \
\hline \text { Correlation } & \mathbf { - 0 . 9 2 7 } & \
\hline
\end{array}$$
A) 95.47%
B) 100%
C) 85.9%
D) 55.6%
E) 4.68%

Question

Interpret the value of correlation coefficients and squared correlations.
-A small independent organic food store offers a variety of specialty coffees. To
Determine whether price has an impact on sales, the managers kept track of how many
Pounds of each variety of coffee were sold last month. Based on the summary statistics
Shown below, what percent of the variability in the number of pounds of coffee sold per
Week can be explained by price? $$\begin{array} { | l | l | l | } 
\hline \text { Mean } & \$ 8.75 & 54.50 \
\hline \text { Standard Deviation } & \$ 3.63 & 18.33 \
\hline \text { Correlation } & \mathbf { - 0 . 9 2 7 } & \
\hline
\end{array}$$
A) 95.47%
B) 100%
C) 85.9%
D) 55.6%
E) 4.68%

Quizplus · Accepted Answer

The correlation coefficient is -0.927. The squared correlation (r^2) is 0.927^2 = 0.859, which means 85.9% of the variability in the number of pounds of coffee sold can be explained by price.

Interpret the Value of Correlation Coefficients and Squared Correlations A) 9547% B) 100% C) 85

Interpret the Value of Correlation Coefficients and Squared Correlations A) 9547%
B) 100%
C) 85