One of the Primary Feeds for Beef Cattle Is Corn

question 13

Multiple Choice

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.
$\begin{array} { c c } \hline \text { Corn Price } ( \$ / \text { bu } ) & \text { Ribeye Price } ( \$ / \text { lb) } \\\hline 5.82 & 13.01 \\5.70 & 12.24 \\5.80 & 13.01 \\5.84 & 12.94 \\6.56 & 13.89 \\6.21 & 13.04 \\6.39 & 13.01 \\6.61 & 13.76 \\6.06 & 12.53 \\5.84 & 12.95 \\\hline\end{array}$
The correlation coefficient between the corn price and the ribeye price is 0.773. 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)Increasing corn prices cause ribeye prices to increase.
• C)The changes in corn price and ribeye price tend to go up and down together.
• D)There is no correlation between the price of corn and the price of ribeye.

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Definitions:

Ratification

The action of officially approving or confirming a previous act or decision, which was made without authorization or was otherwise questionable, to make it legally valid.

Voidable Contract

A contract that remains valid until one party, who is entitled to do so because of a defect in the contract formation, chooses to void it.

Mixed Message

A communication that contains conflicting or contradictory information, leading to confusion or misunderstanding.

Rescission

The cancellation of a contract, returning all parties involved to their states prior to the contract's execution.