One of the primary feeds for beef cattle is corn. The following table presents the average price in dollars for a bushel of corn and a pound of ribeye steak for 10 consecutive months
$$\begin{array} { c c }
\hline \text { Corn Price } ( \$ / b u ) & \text { Ribeye Price } ( \$ / \text { b) } \
\hline 6.40 & 13.20 \
6.08 & 13.21 \
6.11 & 13.30 \
6.37 & 13.55 \
5.91 & 12.57 \
6.22 & 13.37 \
6.49 & 13.54 \
6.20 & 13.37 \
6.00 & 12.88 \
6.04 & 12.71 \
\hline
\end{array}$$
Compute the correlation coefficient between the corn price and the ribeye price.
A)0.815
B)0.965
C)0.664
D)0.185

Question

One of the primary feeds for beef cattle is corn. The following table presents the average price in dollars for a bushel of corn and a pound of ribeye steak for 10 consecutive months
$$\begin{array} { c c } 
\hline \text { Corn Price } ( \$ / b u ) & \text { Ribeye Price } ( \$ / \text { b) } \
\hline 6.40 & 13.20 \
6.08 & 13.21 \
6.11 & 13.30 \
6.37 & 13.55 \
5.91 & 12.57 \
6.22 & 13.37 \
6.49 & 13.54 \
6.20 & 13.37 \
6.00 & 12.88 \
6.04 & 12.71 \
\hline
\end{array}$$
Compute the correlation coefficient between the corn price and the ribeye price.
A)0.815
B)0.965
C)0.664
D)0.185

Quizplus · Accepted Answer

The correlation coefficient is a measure of the strength and direction of a linear relationship between two variables. It is calculated by dividing the covariance of the two variables by the product of their standard deviations. The covariance is a measure of how much the two variables vary together, and the standard deviation is a measure of how much each variable varies on its own.In this case, the correlation coefficient between the corn price and the ribeye price is 0.815. This indicates that there is a strong positive linear relationship between the two variables. As the corn price increases, the ribeye price also tends to increase.

One of the Primary Feeds for Beef Cattle Is Corn