Crystallo Bottling Company, which provides plastic bottles to various soft drink manufacturers, has the following information pertaining to the number of cases per shipment and the corresponding transportation costs:
Number of Cases per Shipment Transportation Costs in Dollars
1,500.............................................. $200
2,200.............................................. 260
3,500.............................................. 310
4,300.............................................. 360
5,800.............................................. 420
6,500.............................................. 480
7,300.............................................. 540
8,200.............................................. 630
8,500.............................................. 710
9,800.............................................. 730
The marketing manager is interested in studying the relationship between the number of cases per shipment and the transportation costs. Your assistance is needed.
a. Using a statistical software package, enter the data and calculate the Pearson product-moment correlation coefficient.
b. Does it appear that there is a relationship between the number of cases and transportation costs? Explain.