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. $$\begin{array} { | l | l | l | }
\hline \text { Mean } & \$ 8.75 & 54.50 \
\hline \text { Standard Deviation } & \$ 3.63 & 18.33 \
\hline \text { Correlation } & \mathbf { - 0 . 9 2 7 } & \
\hline
\end{array}$$ 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?
A) 95.47%
B) 100%
C) 85.9%
D) 55.6%
E) 4.68%

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. $$\begin{array} { | l | l | l | } 
\hline \text { Mean } & \$ 8.75 & 54.50 \
\hline \text { Standard Deviation } & \$ 3.63 & 18.33 \
\hline \text { Correlation } & \mathbf { - 0 . 9 2 7 } & \
\hline
\end{array}$$ 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?
A) 95.47%
B) 100%
C) 85.9%
D) 55.6%
E) 4.68%

Quizplus · Accepted Answer

To determine the percent of variability in the number of pounds of coffee sold per week that can be explained by price, we need to find the coefficient of determination, which is the square of the correlation coefficient.

Coefficient of determination = (correlation coefficient)^2 = (-0.927)^2 = 0.860

Therefore, about 85.9% of the variability in the number of pounds of coffee sold per week can be explained by price. Therefore, the best choice is C.

A Small Independent Organic Food Store Offers a Variety of Specialty