TABLE 12-2
A candy bar manufacturer is interested in trying to estimate how sales are influenced by the price of their product. To do this, the company randomly chooses six small cities and offers the candy bar at different prices. Using candy bar sales as the dependent variable, the company will conduct a simple linear regression on the data below:
.
-Referring to Table 12-2, what is the coefficient of correlation for these data?
A) -0.8854
B) -0.7839
C) 0.7839
D) 0.8854

Question

TABLE 12-2
A candy bar manufacturer is interested in trying to estimate how sales are influenced by the price of their product. To do this, the company randomly chooses six small cities and offers the candy bar at different prices. Using candy bar sales as the dependent variable, the company will conduct a simple linear regression on the data below:
  .
-Referring to Table 12-2, what is the coefficient of correlation for these data?
A) -0.8854 
B) -0.7839 
C) 0.7839 
D) 0.8854

Quizplus · Accepted Answer

The coefficient of correlation is a measure of the strength and direction of a linear relationship between two variables. The negative sign in -0.8854 indicates a strong negative correlation.

TABLE 12-2 A Candy Bar Manufacturer Is Interested in Trying to Estimate