Question: Mary's Restaurant runs a correlation analysis on the relationship between the number of customers and the prices charged for meals. She notices that the correlation
Mary's Restaurant runs a correlation analysis on the relationship between the number of customers and the prices charged for meals. She notices that the correlation coefficient is negative. Which of the statements below are true given th information?
The coefficient of determination would also be negative.
An increase in price would result in a decrease in the number of customers.
Applying no fertilizer would mean a negative crop yield.
The standard error would also be negative.
Question point
What defines causal forecasting in demand prediction?
Using historical data to predict future trends
Predicting future demand based on causeandeffect relationships
Estimating demand without considering external factors
Using expert opinions for forecasting
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