Instruction 12-2
a Chocolate Bar Manufacturer Is Interested in Trying

question 70

Multiple Choice

Instruction 12-2
A chocolate bar manufacturer is interested in trying to estimate how sales are influenced by the price of their product.To do this,the company randomly chooses six country towns and cities and offers the chocolate bar at different prices.Using chocolate bar sales as the dependent variable,the company will conduct a simple linear regression on the data below:
$$\begin{array} { l l r r } { \text { City } } & & \text { Price } ( \$ ) & \text { Sales } \\\hline \text { Toowoomba } & & 1.30 & 100 \\\text { Broken Hill } & & 1.60 & 90 \\\text { Bendigo } & & 1.80 & 90 \\\text { Kalgoorlie } & & 2.00 & 40 \\\text { Launceston } & & 2.40 & 38 \\\text { Port Augusta } & & 2.90 & 32\end{array}$$
-Referring to Instruction 12-2,what is the coefficient of correlation for these data?

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Definitions:

Transitory Income

Temporary earnings that can cause fluctuations in an individual's purchasing power and consumption habits.

Permanent Income

An economic theory suggesting that people's consumption choices are influenced more by their lifetime income expectations than by their current income.

Economic Mobility

The ability of an individual, family, or some other group to improve (or decline) their economic status, typically measured over generations.

Inequality Measurement

The analysis or quantification of disparities in income, wealth, health, or other social and economic dimensions.