A coffee shop finds that the correlation between daily high temperature and daily sales is -0.74.The interpretation of this value is as follows:
A)The value of sales falls approximately $0.74 for each degree that the temperature increases.
B)The slope of the linear relationship between temperature and sales is -0.74; there is a negative relation between the two.
C)There is a negative association between temperature and sales: as the temperature falls, sales tend to decrease.
D)There is a negative association between temperature and sales: as the temperature falls, sales tend to increase.
E)There is a negative association between temperature and sales: as the temperature falls, sales tend to decrease by $0.74.

Question

Quizplus · Accepted Answer

The correlation coefficient of -0.74 indicates a negative association between temperature and sales, meaning as one variable increases, the other tends to decrease. In this context, as the temperature falls (increases in the negative direction), sales tend to increase.

A Coffee Shop Finds That the Correlation Between Daily High