Question: Trevor conducted a study and found that the correlation between the price of a gallon of gasoline and gasoline consumption has a linear correlation coefficient

Trevor conducted a study and found that the correlation between the price of a gallon of gasoline and gasoline consumption has a linear correlation coefficient of −0.7. What does this result say about the relationship between price of gasoline and consumption? The study included gasoline prices ranging from $2.70 to $5.30 per gallon. Is it reliable to apply the results of this study to prices of gasoline higher than $5.30 per gallon? Explain.

Step by Step Solution

★★★★★

3.39 Rating (158 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

The correlation coefficient is moderate and negative suggestin... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

785-M-S-L-R (6475).docx

120 KBs Word File

Students Have Also Explored These Related Statistics Questions!

Do people who spend more time on social networking sites spend more time using Twitter? Megan conducted a study and found that the correlation between the times spent on the two activities was 0.8....

Shortys Muffler advertises it can install a new muffler in 30 minutes or less. However, the work standards department at corporate headquarters recently conducted a study and found that 20% of the...

A regional commuter airline selected a random sample of 25 flights and found that the correlation between the number of passengers and the total weight, in pounds, of luggage stored in the luggage...

Set Student Name: 1. Describe the relationship between two variables that have a correlation coefficient value: a. Near -1 b. Near 0 c. Near 1 2. Data was collected where a weightlifter was asked to...

Instuctor's Annotated Edition TENTH EDITION Understandable Statistics Concepts and Methods Charles Henry Brase Regis University Corrinne Pellillo Brase Arapahoe Community College Australia Brazil...

Over the past 50 years, there has been a strong negative correlation between average annual income and the record time to run 1 mile. In other words, average annual incomes have been rising while the...

1. Over the past 50 years, there has been a strong negative correlation between average annual income and the record time to run 1 mile. In other words, average annual incomes have been rising while...

Interpretation Trevor conducted a study and found that the correlation between the price of a gallon of gasoline and gasoline consumption has a linear correlation coeffi cient of 0.7. What does this...

Two variables have a positive linear correlation. Does the dependent variable increase or decrease as the independent variable increases? Choose the correct answer below. O The dependent variable...

The following code segment will display Hello 5 times: forint i = 0; i

Ayurveda is a form of medicine practiced in India. In one study, 20% of U.S.- and Indian-manufactured Ayurvedic medicines purchased through the Internet in 2005 contained detectable levels of several...

An option with an exercise price equal to the underlying asset's price is: Multiple Choice worthless. in the money. of the money. out of the money. Prey 3 of 1 3

How many rooms? Which of the two distributions for room counts in Exercise 4.73 appears more spread out in the probability histograms? Why? Find the standard deviation for each distribution. The...

Critical Thinking Each of the following data sets has a mean of . (i) 8 9 10 11 12 (ii) 7 9 10 11 13 (iii) 7 8 10 12 13 (a) Without doing any computations, order the data sets according to increasing...

Critical Thinking: Data Transformation In this problem, we explore the effect on the standard deviation of adding the same constant to each data value in a data set. Consider the data set 5, 9, 10,...

Critical Thinking: Data Transformation In this problem, we explore the effect on the standard deviation of multiplying each data value in a data set by the same constant. Consider the data set 5, 9,...

a A local firm reports 7,500 bonds outstanding with a face value of $1,000 each, a market value of $1,025 each, and a coupon rate of 6.5 percent. The interest is paid semiannually. What is the amount...

Answer correctly. Original solution. Don't guess The General Mills Company (GMC) purchased a milling machine for $90,000, which it intends to use for the next five years. This machine is expected to...

Use the following probability distribution. a) Find the expected rate of return on Stock X. (3 pts) b) Find the expected rate of return on Stock Y. ( 3 pts) c) Find the standard deviation of Stock X....