The distance (in kilometers) and price (in dollars) for one-way airline tickets from City A to several cities are shown in the table. (you may use excel to perform the calculations) Destination Distance (km) Price ($) City B 2387 232 City C 4523 399 City D 1035 159 City E 2290 155 City F 3875 290 Find the correlation coefficient for this Use distance as the x -variable and price as the y-variable. Recalculate the correlation coefficient for this data using price as the x-variable and distance as the y-variable. What effect does this have on the correlation coefficient? Suppose a $25 security fee was added to the price of each What effect would this have on the correlation coefficient? Suppose the airline had a sale where all ticket prices decreased by 50%. What effect would this have on the correlation coefficient?
The distance (in kilometers) and price (in dollars) for one-way airline tickets from City A to several cities are shown in the table. (you may use excel to perform the calculations) Destination Distance (km) Price ($) City B 2387 232 City C 4523 399 City D 1035 159 City E 2290 155 City F 3875 290 Find the correlation coefficient for this Use distance as the x -variable and price as the y-variable. Recalculate the correlation coefficient for this data using price as the x-variable and distance as the y-variable. What effect does this have on the correlation coefficient? Suppose a $25 security fee was added to the price of each What effect would this have on the correlation coefficient? Suppose the airline had a sale where all ticket prices decreased by 50%. What effect would this have on the correlation coefficient?
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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Question
The distance (in kilometers) and price (in dollars) for one-way airline tickets from City A to several cities are shown in the table. (you may use excel to perform the calculations)
|
Destination |
Distance (km) |
Price ($) |
|
City B |
2387 |
232 |
|
City C |
4523 |
399 |
|
City D |
1035 |
159 |
|
City E |
2290 |
155 |
|
City F |
3875 |
290 |
- Find the correlation coefficient for this Use distance as the x -variable and price as the y-variable.
- Recalculate the correlation coefficient for this data using price as the x-variable and distance as the y-variable. What effect does this have on the correlation coefficient?
- Suppose a $25 security fee was added to the price of each What effect would this have on the correlation coefficient?
- Suppose the airline had a sale where all ticket prices decreased by 50%. What effect would this have on the correlation coefficient?
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