Determine the correlation coefficient and interpret


The manager of a seafood restaurant was asked to establish a pricing policy on lobster dinners. Experimenting with prices produced the following data:

Average Number Average Number
Sold per Day, y Price, x Sold per Day, y Price, x
200 . . . . . . . . . $6.00 155 . . . . . . . . . $8.25
190 . . . . . . . . . 6.50 156 . . . . . . . . . 8.50
188 . . . . . . . . . 6.75 148 . . . . . . . . . 8.75
180 . . . . . . . . . 7.00 140 . . . . . . . . . 9.00
170 . . . . . . . . . 7.25 133 . . . . . . . . . 9.25
162 . . . . . . . . . 7.50
160 . . . . . . . . . 8.00

a. Plot the data and a regression line on the same graph.

b. Determine the correlation coefficient and interpret

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Operation Management: Determine the correlation coefficient and interpret
Reference No:- TGS085799

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