Question

The Chamber of Commerce in a Canadian city has conducted an evaluation of 300 restaurants in its metropolitan area. Each restaurant received a rating on a 3-point scale on typical meal price (1 least expensive to 3 most expensive) and quality (1 lowest quality to 3 greatest quality). A crosstabulation of the rating data is shown below. Forty-two of the restaurants received a rating of 1 on quality and 1 on meal price, 39 of the restaurants received a rating of 1 on quality and 2 on meal price, and so on. Forty-eight of the restaurants received the highest rating of 3 on both quality and meal price.

Quality (x) Meal Price (y)

Total

1    42    39    3 84

2    33    54    63    150

3    6    12    48 66

Total 81 105 114 300

(c) Compute the expected value and variance for meal price, y. expected value variance

(d) The Var(x + y) = 1.6875. Compute the covariance of x and y.

(e) Compute the correlation coefficient between quality and meal price. (Round your answer to four decimal places.)

Answer 1