Suppose the correlation coefficient between a baby’s weight and the number of coffee shops in Plumville is 0.87. Which statement
must be true? A. Having more coffee shops around causes the baby to gain weight.
B. As the baby gains weight, the number of coffee shops tends to increase.
C. As the baby gains weight, the number of coffee shops tends to decrease.
D. The baby’s weight gain causes people to open more coffee shops.
The statement that would be true if the correlation coefficient between a baby’s weight and the number of coffee shops in Plumville is 0.87 would be: B.As the baby gains weight, the number of coffee shops tends to increase.
The correlation coefficient had the score between -1 to 1. If the correlation if more than 0, it is a positive correlation and if the correlation is less than 0, it is a negative correlation. This mean that a correlation score of 0.87 means that number of coffee shops and baby's weight are positively correlated. (when one increase, the other would also be increased)
A demand curve for a product with low elasticity appears to be steeper, because the quantity demanded doesn't change much, even if prices do. Products with low price elasticity are described as being inelastic
