Interpret the Value of Correlation Coefficients and Squared Correlations A) 9547%
B) 100%
C) 85

question 15

Multiple Choice

Interpret the value of correlation coefficients and squared correlations.
-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. 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? $$\begin{array} { | l | l | l | } \hline \text { Mean } & \$ 8.75 & 54.50 \\\hline \text { Standard Deviation } & \$ 3.63 & 18.33 \\\hline \text { Correlation } & \mathbf { - 0 . 9 2 7 } & \\\hline\end{array}$$

• A) 95.47%
• B) 100%
• C) 85.9%
• D) 55.6%
• E) 4.68%

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Definitions:

Retail Stores

Businesses that sell goods or commodities directly to consumers from a particular location or outlet.

Overextended

A financial condition where an individual or organization has taken on more debt or financial obligations than is prudent or sustainable, leading to potential financial distress.

Revolving Door

A metaphor often used to describe the movement of personnel between roles as legislators and regulators and the industries affected by the legislation and regulation, in an ongoing cycle.

Duty of Care

A legal obligation requiring individuals to adhere to a standard of reasonable care while performing acts that could foreseeably harm others.