Question 1
To get the best deal on a microwave oven, Amanda called six appliance stores and asked the cost and volume of several models. The prices and volumes she was quoted are listed below. Estimate or compute the correlation coefficient.
◦ 0.3
◦ 0.7
◦ -0.3
◦ -0.7
Question 2
To get the best deal on a microwave oven, Amanda called six appliance stores and asked the cost and volume of several models. The prices and volumes she was quoted are listed below. Amanda later learned that the group of 3 microwaves with volumes greater than 1 cubic foot and costing less than $200 were discontinued models priced lower than normal. How does this change your view of the correlation?
◦ Within each of the two groups, the correlation is less than it is overall.
◦ Within each of the two groups, the correlation is stronger than it is overall.
◦ There is little correlation either within the groups or overall.
◦ The group of discontinued models has a stronger correlation than the other group.
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