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A small independent organic food store offers a variety of specialty coffees. To

ID: 3208598 • Letter: A

Question

A small independent organic food store offers a variety of specialty coffees. To determine whether price has an impact on sales, the managers kept track of how many pounds of each variety of coffee were sold last month. The data, scatterplot, and summary statistics are shown below.

Price (lb)

Pounds Sold

3.99

75

5.99

6

7.00

65

12.00

45

9.50

80

7.50

70

15.00

25

10.00

35

12.50

40

8.99

50

Mean

8.75

54.50

Standard Deviation

3.63

18.33

Correlation

-0.927

Which of the following statements is true?

Select one:

a. The linearity condition is satisfied.

b. None of the above.

c. There are no obvious outliers.

d. All of the above.

e. The quantitative variable condition is satisfied.

Price (lb)

Pounds Sold

3.99

75

5.99

6

7.00

65

12.00

45

9.50

80

7.50

70

15.00

25

10.00

35

12.50

40

8.99

50

Mean

8.75

54.50

Standard Deviation

3.63

18.33

Correlation

-0.927

Explanation / Answer

Statements A and E are TRUE

Statement C is wrong because we see that 6 is too small compared to rest of the values and hence it is an outlier

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