Question

In: Statistics and Probability

The price of the standard family BREAD and the company market share was recorded for a...

The price of the standard family BREAD and the company market share was recorded for a random sample of 12 Bakeries.

Selling price ‘00          137 138125142168 145 135 145 160 146 136 160

Market share %            14 15 10 8 9 7 11 5 3 5 7 2

  1. Using relevant illustrations explain the concept of (r) correlations                           
  2. Plot the data on a scatter diagram; draw a line of best fit and comment on it
  3. Calculate the product-moment correlation coefficient and interpret your resuls

Solutions

Expert Solution

from the scatter plot we can see the trend line of best fit. And we can see that it's negatively sloped down. As you didn't mention about the predictor and regressor variables. I assumed market price is predictable based on selling price. And from the picture I can say that as increment of per unit in selling price, market sharing decreased by 0.1801 unit.

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orchestra answered 2 years ago
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