The manager of a seafood restaurant was asked to establish a pricing policy on lobster dinners. Experimenting
Question:
The manager of a seafood restaurant was asked to establish a pricing policy on lobster dinners. Experimenting with prices produced the following data:
Average Number
Sold per Day, y Price, x
240 $5.00
233 5.25
225 5.50
216 5.75
211 6.00
204 6.25
196 6.50
190 6.75
190 7.00
191 7.25
184 7.50
179 7.75
Determine the correlation coefficient and interpret it. (Include the negative sign, as appropriate, directly before the value. Enter your "r" answer to 4 decimal places. Enter your first "r2" answer as a proportion (between 0 and 1) and to 2 decimal places. Then enter the next answer as the percentage equivalent to the nearest whole number percent. Omit the "%" sign in your response.)
r = implies a relationship between price and demand. | ||
r2 = . It appears that approximately % of the variation in sales can be accounted for by the price of our product. This indicates that price a good predictor of sales. |
Basic Statistics for Business and Economics
ISBN: 978-0073521473
8th edition
Authors: Douglas Lind, William Marchal, Samuel Wathen