(4.49 S-AQ) Coffee is a leading export from several developing countries. When c
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Question
(4.49 S-AQ) Coffee is a leading export from several developing countries. When coffee prices are high, farmers often clear forest to plant more coffee trees. Here are five years' data on prices paid to coffee growers in Indonesia
1. What is the correlation (± 0.01) between the price of coffee and the forest loss
in US dollars?
2. What is the correlation (± 0.01) between the price of coffee and the forest loss
in UK pounds , if the exchange rate is 0 UK pounds per US dollar ?
Price ($US per pound) 0.24 0.43 0.46 0.64 0.68 Forest lost (percent) 0.7 1.41 1.47 2.08 3.32Explanation / Answer
threfore:
2) here please revert if exchange rate is 0 UK pounds cause in that case correlation will be 0 ; if exchange rate is significant then correlation coefficient will remain 0.9179
S.No X Y (x-x)2 (y-y)2 (x-x)(y-y) 1 0.240 0.700 0.0625 1.2012 0.2740 2 0.430 1.410 0.0036 0.1490 0.0232 3 0.460 1.470 0.0009 0.1063 0.0098 4 0.640 2.080 0.0225 0.0807 0.0426 5 0.680 3.320 0.0361 2.3226 0.2896 Total 2.45 8.98 0.1256 3.8597 0.6391 Mean 0.4900 1.7960 SSX SSY SXYRelated Questions
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