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.
$\begin{array} { c c }
\hline \text { Corn Price (\$/bu) } & \text { Ribeye Price } ( \$ / \mathrm { lb } ) \
\hline 6.25 & 13.57 \
5.81 & 12.99 \
5.79 & 13.01 \
6.64 & 13.70 \
6.24 & 13.54 \
6.03 & 12.71 \
5.99 & 12.47 \
6.28 & 13.50 \
6.33 & 13.02 \
5.87 & 12.40 \
\hline
\end{array}$
Compute the correlation coefficient between the corn price and the ribeye price.
A) 0.621
B) 0.721
C) 0.279
D) 0.520

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. 
$\begin{array} { c c } 
\hline \text { Corn Price (\$/bu) } & \text { Ribeye Price } ( \$ / \mathrm { lb } ) \
\hline 6.25 & 13.57 \
5.81 & 12.99 \
5.79 & 13.01 \
6.64 & 13.70 \
6.24 & 13.54 \
6.03 & 12.71 \
5.99 & 12.47 \
6.28 & 13.50 \
6.33 & 13.02 \
5.87 & 12.40 \
\hline
\end{array}$
 Compute the correlation coefficient between the corn price and the ribeye price.
A) 0.621
B) 0.721
C) 0.279
D) 0.520

Quizplus · Accepted Answer

We can use a calculator or software to calculate the correlation coefficient. Using a calculator or software, we get a correlation coefficient of 0.721. This indicates a moderately strong positive correlation between the corn price and the ribeye price. Therefore, the best choice is (B).

One of the Primary Feeds for Beef Cattle Is Corn