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.
$$\begin{array} { | l | l | l | }
\hline \text { Mean } & \$ 8.75 & 54.50 \
\hline \begin{array} { c }
\text { Standard } \
\text { Deviation }
\end{array} & \$ 3.63 & 18.33 \
\hline \text { Correlation } & - \mathbf { 0 . 9 2 7 } & \
\hline
\end{array}$$
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?

Question

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.
 $$\begin{array} { | l | l | l | } 
\hline \text { Mean } & \$ 8.75 & 54.50 \
\hline \begin{array} { c } 
\text { Standard } \
\text { Deviation }
\end{array} & \$ 3.63 & 18.33 \
\hline \text { Correlation } & - \mathbf { 0 . 9 2 7 } & \
\hline
\end{array}$$
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?

Quizplus · Accepted Answer

The coefficient of determination, $ R^2 $, is the square of the correlation coefficient. Here, $ R = -0.927 $, so $ R^2 = (-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.

A Small Independent Organic Food Store Offers a Variety of Specialty