A Study Looked at X = Distance of Convenience Stores

question 43

Multiple Choice

A study looked at x = distance of convenience stores from a large city's Contemporary Art Museum, and y = price of a 50-mL bottle of water at the stores.The Spearman's rank correlation coefficient was calculated to be -0.73.What does this tell you about the variables?

• A) There is no association between distance from the museum and the price of bottled water.
• B) There is an association between these variables: On average, the farther a convenience store is from the museum, the less expensive a bottle of water is at the store.
• C) There is an association between these variables: On average, the farther a convenience store is from the museum, the more expensive a bottle of water is at the store.
• D) The distance of a convenience store from the museum determines the price of a bottle of water at the store.

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Definitions:

Turnover

In a business context, this term can refer to the rate at which inventory is sold and replaced or the rate at which employees leave and are replaced within a company.

Return on Investment

A financial metric used to measure the profitability or efficiency of an investment, calculated by dividing net profit by the initial cost of the investment.

Minimum Required Return

This refers to the smallest expected or necessary rate of return on an investment to make it worthwhile.

Transfer Price

The amount levied on goods or services traded across sections or sister companies within the same organization.