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. $\begin{array} { c c }
\hline \text { Corn Price } ( \$ / \text { bu } ) & \text { Ribeye Price } ( \$ / 1 b ) \
\hline 6.25 & 13.75 \
6.20 & 12.86 \
5.85 & 12.61 \
5.74 & 12.66 \
6.44 & 13.94 \
5.81 & 12.75 \
5.97 & 12.66 \
6.59 & 14.25 \
5.72 & 12.87 \
6.56 & 14.11 \
\hline
\end{array}$
The correlation coefficient between the corn price and the ribeye price is 0.918. Which of the Following is the best interpretation of the correlation coefficient?
A) The price of ribeye tends to go down and the price of corn goes up.
B) The changes in corn price and ribeye price tend to go up and down together.
C) There is no correlation between the price of corn and the price of ribeye.
D) Increasing corn prices cause ribeye prices to increase.

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. $\begin{array} { c c } 
\hline \text { Corn Price } ( \$ / \text { bu } ) & \text { Ribeye Price } ( \$ / 1 b ) \
\hline 6.25 & 13.75 \
6.20 & 12.86 \
5.85 & 12.61 \
5.74 & 12.66 \
6.44 & 13.94 \
5.81 & 12.75 \
5.97 & 12.66 \
6.59 & 14.25 \
5.72 & 12.87 \
6.56 & 14.11 \
\hline
\end{array}$
 The correlation coefficient between the corn price and the ribeye price is 0.918. Which of the Following is the best interpretation of the correlation coefficient?
A) The price of ribeye tends to go down and the price of corn goes up.
B) The changes in corn price and ribeye price tend to go up and down together.
C) There is no correlation between the price of corn and the price of ribeye.
D) Increasing corn prices cause ribeye prices to increase.

Quizplus · Accepted Answer

A correlation coefficient of 0.918 indicates a strong positive correlation between the price of corn and the price of ribeye. This means that the changes in the prices of corn and ribeye tend to go up and down together. Option A is incorrect because it suggests an inverse relationship between the two prices. Option C is incorrect because there is a correlation between the two prices. Option D is incorrect because correlation does not imply causation, so we cannot conclude that increasing corn prices cause ribeye prices to increase.

One of the Primary Feeds for Beef Cattle Is Corn