The Data Below Are the Average Monthly Temperatures, in °F

question 83

Short Answer

The data below are the average monthly temperatures, in °F, and the monthly natural gas consumption, in ccf,
for a household in northwestern Pennsylvania. Calculate the correlation coefficient, r. $$\begin{array} { l | c c c c c c c c c } \text { Temperature } & 47 & 35 & 21 & 27 & 39 & 48 & 61 & 65 & 70 \\\hline \text { Consumption } & 34 & 169 & 248 & 134 & 137 & 100 & 19 & 34 & 12\end{array}$$

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Definitions:

Production Possibilities Frontier

A curve depicting all maximum output possibilities for two goods, given a set of inputs, representing the trade-off between different choices in the allocation of resources.

Opportunity Cost

Giving up possible gains from several options by choosing a particular one.

Bowed Outward

A description of the shape of a curve on a graph, such as the production possibilities frontier, indicating increasing opportunity costs.

Opportunity Cost

The penalty of dismissing the closest superior alternative when engaging in the process of decision-making.