An Environmentalist Wants to Determine the Relationship Between the Number

question 21

Essay

An environmentalist wants to determine the relationship between the number (in thousands) of forest fires over the year and the number (in hundreds of thousands) burned. The data for 8 recent years are shown.
a. Draw the scatter plot for the variables.
b. Give a brief explanation of the type of relationship.
$\begin{array} { c c } \text { Number of fires } x & \text { Number of acres burned } \\ 72 & 62 \\ 69 & 42 \\ 58 & 19 \\ 47 & 26 \\ 84 & 51 \\ 62 & 15 \\ 57 & 30 \\ 45 & 15 \end{array}$

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Definitions:

Fixed Costs

Costs that do not vary with the quantity of output produced

Monopolistically Competitive

A market structure characterized by many firms offering products that are similar but not perfect substitutes, leading to competitive yet differentiated markets.

Barriers to Entry

Economic, procedural, or regulatory obstacles that prevent new competitors from easily entering an industry or area of business.

Monopolistically Competitive

In a monopolistically competitive market, many firms sell products that are similar but not identical, allowing for some degree of market power and price setting.