Compute the Linear Correlation Coefficient Between the Two Variables and Determine

question 9

Multiple Choice

Compute the linear correlation coefficient between the two variables and determine whether a linear relation exists.
-The table shows the number of days off last year and the earnings for the year (in thousands of dollars) for nine randomly selected insurance salesmen.

• A) \(\mathrm { r } = - 0.991\); linear relation exists
• B) \(\mathrm { r } = - 0.991\); no linear relation exists
• C) \(\mathrm { r } = - 0.899\); linear relation exists
• D) \(\mathrm { r } = - 0.899\); no linear relation exists

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Definitions:

Convenience Goods

Products that are inexpensive and readily available, making them easy for consumers to buy frequently with minimal effort.

Consumer Staples

Essential products that consumers continue to demand regardless of economic conditions, such as food, beverages, and household goods.

Specialty Goods

High-value products that are unique or considered luxury items, often requiring a specific purchasing effort by consumers.

Cannibalized

When a new product or service significantly reduces the sales, market share, or demand of an existing product within the same company.