A study was conducted to determine if there was a relationship between the prices a non-member of a book club paid for various publications and the prices that a member paid for the same publications. The data gathered is shown below. Compute the value of the correlation coefficient.
A) 0.762
B) 0.857
C) 0.679
D) 0.932

Question

A study was conducted to determine if there was a relationship between the prices a non-member of a book club paid for various publications and the prices that a member paid for the same publications. The data gathered is shown below. Compute the value of the correlation coefficient. 
A) 0.762 
B) 0.857 
C) 0.679 
D) 0.932

Quizplus · Accepted Answer

To compute the correlation coefficient, we need to use the formula for Pearson's correlation coefficient. Using a calculator or software, we get a value of r = 0.857. This value indicates a strong positive correlation between the prices paid by non-members and members of the book club. Therefore, the best choice is B) with a correlation coefficient of 0.857.

A Study Was Conducted to Determine If There Was a Relationship